The US dollar is struggling near a five-month low against major currencies as concerns grow about the economic impact of President Trump’s trade policies and recent weak economic data. Meanwhile, the euro is approaching a five-month high of $1.0947 following Germany’s agreement on a substantial fiscal deal that includes a €500 billion infrastructure fund and changes to borrowing rules.
Currency market dynamics have shifted significantly in recent months, with traders reassessing their expectations about Trump’s economic policies. Other currencies showing strength include the Chinese yuan, which is near a four-month high following Beijing’s announcement of a “special action plan” to boost domestic consumption. The Federal Reserve and several other central banks are meeting this week, with only the Swiss National Bank expected to cut rates.