After stabilizing yesterday, and into today, news of political developments in Germany suggest movement toward an agreement on defense spending and sent the dollar lower.
The U.S. has poured more than $120 billion into Ukraine since its war with Russia began three years ago, but with a new administration in Washington, that support is grinding to a halt.
Global trade tensions kept markets on edge Tuesday, with stocks swinging violently before ultimately closing in the red—despite flickers of optimism in U.S.-Canada trade talks.
Despite the bullish seasonal trend, key risks remain. A stronger-than-expected US inflation print or hawkish Fed rhetoric could revive dollar strength, putting pressure on EUR/USD.
Asian stock markets tumbled on Tuesday, mirroring losses on Wall Street as concerns over US tariff policies and recession risks rattled investor sentiment.
It was a pretty rough day in the market. The S&P 500 finished down about 2.7%, but it could have been worse—we were trading as low as 5,560, about a 3.25% decline.
Shifting U.S. foreign policy, rising geopolitical uncertainty, and an overextended stock market are making investors and policymakers reconsider their exposure to the greenback.
