Dollar Rises on US-China Trade Optimism
The dollar index rose 0.2% to around 100.6 on Monday, extending a three-week rally as the Trump administration touted progress in trade negotiations with China following negotiations over the weekend in Switzerland.
US representatives said an agreement had been reached with China to cut the US trade deficit, while Chinese officials said that they have arrived at an “important consensus.” Further details are expected later today. Investors also looked ahead to US consumer inflation figures on Tuesday, as well as retail sales and producer price data on Thursday, to assess the early effects of the trade war on the economy.
Earlier this year, the dollar faced significant selling pressure amid concerns that President Trump’s trade policies were undermining investor confidence in US assets. However, recent signs of progress in trade talks, solid economic indicators, and a cautious stance from the Federal Reserve on future rate cuts have helped support the currency in recent weeks.
Source: Trading Economics