FX.co ★ Dollar Rises on US-China Trade Optimism

The dollar index experienced a 0.2% uptick, reaching approximately 100.6 on Monday. This rise marks the continuation of a three-week upward trend, buoyed by the Trump administration's reported advancements in trade discussions with China held over the weekend in Switzerland. U.S. representatives announced an accord with China aimed at reducing the U.S. trade deficit. Concurrently, Chinese officials mentioned they had reached an "important consensus." Further specifics are anticipated later today. Market participants are also focused on upcoming U.S. economic indicators, including consumer inflation figures due Tuesday, as well as retail sales and producer price data expected on Thursday. These reports will be crucial for evaluating the initial impacts of the trade war on the economy. Earlier this year, the dollar endured notable selling pressure due to apprehensions that President Trump's trade policies were detracting from investor confidence in U.S. assets. Nonetheless, recent signals of progress in trade negotiations, robust economic data, and a cautious approach by the Federal Reserve concerning future interest rate cuts have bolstered the currency in recent weeks.