USD strengthens as Trump delays EU tariffs, Europe gains on relief rally

The US dollar gained strength Tuesday following President Trump's decision to delay EU tariffs, easing immediate trade tensions while supporting risk sentiment across global markets. Asian markets showed mixed performance while European indices advanced on the tariff reprieve. US new single-family home sales data showed robust 10.9% growth, adding to dollar support through economic strength indicators. Futures surged in pre-market trading as the tariff delay reduced immediate economic uncertainty between major trading partners. The temporary relief from trade tensions has allowed markets to refocus on fundamental economic data rather than geopolitical risks. Currency markets reflected this shift with the dollar maintaining bid tone against major pairs despite reduced safe-haven demand. Traders remain cautious as the delay represents postponement rather than resolution, keeping medium-term volatility expectations elevated for EUR/USD and other major pairs.