The US Dollar is struggling as it wraps up its worst first half of the year since 1973, losing over 10% against a basket of major currencies amid ongoing trade policy uncertainty and domestic political challenges. Tensions around reciprocal tariffs are mounting, with a July 9 deadline approaching for key trade negotiations. Canada has scrapped its proposed digital services tax to restart tariff talks with the US, while the Euro continues to gain ground, supported by significant asset inflows into Europe-based equities. Domestically, the focus remains on the Senate's battle over a massive tax and spending bill, which could add $3.3 trillion to the deficit if passed. This holiday-shortened week could still see volatility, with the release of June non-farm payrolls on Thursday potentially driving further Dollar weakness.
