Euro gains after German fiscal deal; dollar buoyed with US govt shutdown likely averted

The euro gained on Friday after German parties agreed on a fiscal deal that boosts defence spending and infrastructure. The dollar weakened against the euro but strengthened against the Swiss franc and the yen. U.S. inflation expectations rose, hinting at the Federal Reserve’s cautious approach to rate cuts. The pound weakened as the British economy contracted. The euro gained on Friday after German parties agreed on a fiscal deal that boosts defence spending and infrastructure. The dollar weakened against the euro but strengthened against the Swiss franc and the yen. U.S. inflation expectations rose, hinting at the Federal Reserve’s cautious approach to rate cuts. The pound weakened as the British economy contracted.  Economic Times