The U.S. dollar rallied sharply against major currencies on Monday following news of a trade deal between President Donald Trump and European Commission President Ursula von der Leyen, which eased fears of a full-blown trade war. The agreement slashed proposed tariffs on EU imports from 30% to 15%, bringing relief to investors and triggering a broader shift in global currency sentiment.

The euro, which initially jumped in Asia trading, reversed course and fell 0.81% to $1.1642—its biggest one-day drop since May. Analysts suggested the turnaround reflected a belief that the deal was heavily skewed in favor of the U.S., restoring investor appetite for dollar-denominated assets. As Macquarie’s FX strategist Thierry Wizman put it, “This isn’t a divorce—it’s marriage counseling. The U.S. is re-engaging with its allies.” Continue reading Dollar Surges After Trump–EU Trade Pact Eases Global Market Tensions →