The US dollar index edged higher to trade above 98 as the market sentiment improved slightly when the US eased trade restrictions temporarily on Huawei. At the time of writing, DXY is trading at around 98.05 after having climbed up to 98.134 on Tuesday, the highest in over three weeks.

The DXY has strengthened by 1.9% so far this year. However, markets continue to trade amid an air of uncertainty around trade tensions between US and China. Analysts are expecting the sentiment to continue this way for a while as a resolution or a deal between the two countries seems nowhere in sight just yet.

US Treasury yields also climbed slightly higher, with the yield on the 10-year Treasury note reaching 2.423% .