The euro is nearing $1.09, near its November high, as traders await further updates on Germany's fiscal stimulus. A key spending plan vote is set for this week, with proposed reforms, exempting defense spending from debt limits and setting out a €500 billion infrastructure investment plan, expected to be passed in Germany's lower and upper houses. This follows a deal secured by the election-winning conservative CDU/CSU bloc with the SPD and the Greens.

Meanwhile, investors are closely monitoring developments in the ongoing trade war and the situation in Ukraine. On the monetary policy front, traders have scaled back expectations for an ECB interest rate cut this year, now pricing in just two more cuts, likely in April and June. Furthermore, rates are no longer expected to fall below 2%.

Source: Trading Economics