U.S. Dollar Rebounds Amid Global Trade Talks and Eurozone Challenges

The U.S. dollar experienced gains after recent weakening. This came as the European Central Bank cut rates, impacting the euro. Trade deal discussions, especially involving the U.S., China, and the eurozone, are pivotal. Meanwhile, global currencies, including the kiwi and Aussie, also showed fluctuations based on economic data.

The U.S. dollar climbed higher on Thursday, stabilizing after recent declines, as the euro saw a slight decrease following the European Central Bank's decision to cut rates for the seventh time this year. This decision aims to support the struggling eurozone economy, which faces pressure from U.S. tariffs.

Eric Theoret, an FX strategist at Scotiabank, noted that other G10 currencies have shown strength recently but are entering a pause phase. He maintains a bearish outlook for the dollar despite its latest consolidation. Market watchers are keen on developments in trade discussions between President Trump's administration and global partners.

President Trump expressed confidence in reaching a trade deal with China, though details remain vague. At discussions scheduled at the White House, Trump, alongside Italian Prime Minister Giorgia Meloni, showed optimism about easing U.S.-European trade tensions. Progress in tariff talks with Japan was also highlighted.

(With inputs from agencies.)