Dollar droops as optimism over US trade deals boost Fed easing bets

Dollar droops as optimism over US trade deals boost Fed easing bets

Source: EODHD - https://www.investing.com/news/economy-news/dollar-droops-as-optimism-over-us-trade-deals-boost-fed-easing-bets-4116111
Published: Jun 29, 2025 10:03 PM

By Kevin Buckland TOKYO (Reuters) -The dollar wallowed near its lowest in nearly four years against the euro on Monday as market optimism over U.S. trade deals bolstered bets for earlier Federal Reserve interest rate cuts. The greenback also languished near a four-year low versus sterling and a more than decade trough to the Swiss franc after Washington and China moved closer to a tariff agreement, even as U.S. President Donald Trump injected some uncertainty into the market’s bullish narrative by abruptly cutting off trade talks with Ottawa. Investors interpreted Fed Chair Jerome Powell’s testimony to U.S. Congress last week as dovish, after he said that rate cuts were likely if inflation d...

Market context: This update is relevant to EUR traders, with EURUSD as the primary instrument to monitor for follow-through, trend continuation, or headline volatility.