💰 Dollar Weakens as Trade War Fears Fade The US dollar fell against major currencies as traders priced out the risk of an immediate trade war, following Trump’s delay in tariffs on Mexico and Canada. The Bloomberg Dollar Spot Index dropped to its lowest level in over a week. ⚫ Key Drivers: — Tariff Relief: Trump’s decision to postpone levies on North American trade partners eased market concerns. — Rate Cut Bets: Weaker US jobs data fueled expectations of Federal Reserve rate cuts, further pressuring the dollar. — Yen Strength: Stronger-than-expected Japanese wage growth increased bets on a Bank of Japan rate hike, narrowing the US-Japan yield gap and boosting the yen by 1.1% to 152.65 per dollar. — Commodity Currencies Rally: Export-sensitive currencies like the New Zealand and Taiwanese dollars gained on the lower likelihood of global trade disruptions. ⚫ Market Outlook: Traders are shifting focus to US economic fundamentals, with upcoming labor market data and Treasury debt issuance providing fresh direction. The dollar's recent strength is cooling off, as investors reassess Trump’s trade strategy as more of a negotiation tool rather than a trigger for economic conflict. ⚡ECONOMY NEWS⚡