Bitcoin price today: gains to $120k, near record high on U.S. regulatory cheer
Investing.com - The U.S. dollar weakened on Tuesday, weighed down by persistent fears over a possible recession, while hopes for a German defense spending deal propelled a move higher in the euro.
In mid-afternoon European trade, the dollar index, which tracks the greenback against a basket of its currency peers, was down by 0.6% and in sight of a four-month low.
The greenback was battered by increased speculation over a U.S. economic slowdown, especially following a slew of weak readings on the overall business activity and consumer sentiment.
U.S. President Donald Trump over the weekend declined to rule out the possibility of a recession and flagged some economic turbulence as he enacted his policy agenda -- which entail mass government layoffs, federal spending cuts, and tax breaks. Trump also kept up his threats of more trade tariffs on both friends and adversaries alike.
Traders will be focused this week on key consumer price index inflation data, along with a fresh reading of job openings, for more cues on the economy and interest rates.
Euro rises against the dollar
Meanwhile, the euro strengthened against the dollar by 0.7% to $1.0915.
Traders were eyeing ongoing discussions over fresh military and infrastructure spending plans between the parties who will likely form Germany’s next coalition government.
Germany’s Greens, however, have previously said they would block the proposals, which have been touted by Friedrich Merz -- the anticipated chancellor-in-waiting of Europe’s largest economy -- as necessary steps to address urgent concerns over defense and wider economic malaise.
The refusal to back both the expenditures and a loosening of Berlin’s longstanding borrowing limits has threatened to derail an agreement between Merz’s conservatives and current Chancellor Olaf Scholz’s Social Democratic Party that had helped lift global stocks.
Still, the Greens have put forward rival plans as part of a bid to secure a compromise deal, giving a fillip to sentiment.
Elsewhere, sterling gained by 0.4% against the dollar to $1.2934.
(Ambar Warrick contributed reporting.)