Budget Deficit

The euro remains pressured as French fiscal concerns overshadow sticky euro-area inflation and keep traders cautious on EUR/USD. Technical traders are watching 1.1161 as the next major support level, while 1.1212 remains the first resistance barrier.

The S&P 500 and Dow Jones remain supported by softer inflation and weaker job growth, which have eased pressure on the Federal Reserve to raise rates. Still, new drone tariffs, elevated Treasury yields and a widening budget deficit are adding fresh uncertainty to the bullish outlook.