Dollar dented by simmering trade tensions, rate cut bets

Economic and Currency Trends - The U.S. dollar is experiencing a decline, marking a third consecutive session of losses against major currencies such as the euro, yen, and Swiss franc, influenced by U.S.-China tensions and Federal Reserve remarks [1][2] - The dollar weakened by 0.49% to 0.793 against the Swiss franc, reflecting ongoing trade tensions and market uncertainty [2] - The dollar index fell by 0.33% to 98.35, with U.S. Treasury yields near multi-week lows, indicating pressure on the dollar amid a potential prolonged U.S. government shutdown [4] Federal Reserve Insights - Federal Reserve Governor Christopher Waller supports another interest rate cut at the upcoming policy meeting due to mixed job market signals [3] - The Fed's Beige Book indicates emerging economic weakness, including rising layoffs and reduced spending among middle and lower-income households, which may influence future rate decisions [4] U.S.-China Trade Relations - The dominant narrative remains U.S.-China trade tensions, with China increasing pressure ahead of a meeting between Presidents Xi Jinping and Donald Trump, raising questions about potential negotiation strategies [2] European Economic Developments - French Prime Minister Sebastien Lecornu survived two no-confidence votes, allowing him to deliver a budget and temporarily suspending controversial pension reforms, which positively impacted the euro, pushing it to a one-week high at $1.1688 [6]