1004 ET - Germany's plans to boost growth with government spending supports the euro against the dollar, particularly while U.S. indicators soften. The fiscal package "has the potential to substantially alter the outlook for German growth, and in turn has significant implications for European FX markets," Goldman Sachs' economists write. It is unclear whether other European countries will ramp up spending, but Goldman says any move in that direction could boost the euro. Meanwhile, Wall Street prices in at least three interest rate cuts by the Fed this year, removing the dollar support that came from tight monetary policy expectations. The ICE's U.S. dollar index falls 1.2%, near its lowest levels since November. (paulo.trevisani@wsj.com; @ptrevisani)
(END) Dow Jones Newswires
March 05, 2025 10:04 ET (15:04 GMT)
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