FX.co ★ Dollar On Track to End the Week Higher

The dollar index slightly declined to approximately 100 on Friday, following two consecutive sessions of gains, as market participants anticipated the US-China trade discussions set for the weekend. President Trump conveyed optimism, suggesting that he expects meaningful progress from the negotiations. Concurrently, the recently announced US-UK trade agreement offered some assurance to investors hoping for a reduction in global trade tensions. However, the deal seems to be limited in scope, with minimal details disclosed thus far, and a 10% tariff on imports from the UK remains intact. For the week, the US dollar is poised to increase by approximately 0.6%, buoyed by the Federal Reserve's decision to maintain the federal funds rate, while also indicating no immediate need for rate cuts and emphasizing heightened risks to both inflation and unemployment.