The dollar eased against the euro on Tuesday as Germany's parliament approved plans for a massive spending surge on Tuesday and as the Federal Reserve kicked off its March policy meeting that could offer clues to the path of U.

Germany is expected to pass a major spending bill on defence and infrastructure, allowing the country to unleash hundreds of billions of euros into the economy. Both the euro and Germany’s stock markets may maintain their uptrends amid optimism about the fiscal reform.

The euro rebounds from near-parity with the dollar, driven by Germany’s fiscal stimulus plans and shifting ECB rate expectations. What's next?