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.
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.
Gold price (XAU/USD) builds on its intraday ascent beyond the $2,900 mark, hitting a fresh daily high during the first half of the European session and reversing a major the previous day's losses to a one-week low.
Shifting U.S. foreign policy, rising geopolitical uncertainty, and an overextended stock market are making investors and policymakers reconsider their exposure to the greenback.
Gold price retreats as the week begins, down 0.70%, and falls below the $2,900 figure as investors’ fears of a recession in the United States grow amid controversial trade policies implemented by US President Donald Trump.
The dollar has begun the new week, which could see US steel and aluminum tariffs announced Wednesday, softer, but mostly consolidating within the pre-weekend range.
Stock markets remain mostly weak, especially in the USA, as the ongoing trade war involving the USA is still unresolved, with new tariffs here to stay at least for the time being.
