Early on Monday, the US dollar continues to trade somewhat weaker against its major peers as traders remain wary about just how effective the partial trade agreement would be towards resolving the US-China trade war. At the time of writing, the US dollar index DXY is trading around 98.42.

The US dollar slid lower against other major currencies last Friday after Trump announced that the US and China have agreed on some key issues surrounding agriculture, financial services, currency and some IP protection concerns in the Phase 1 of a trade deal. The announcement was made after intense negotiations between high level trade teams of both nations at Washington.

The US dollar also weakened against the pound over rising hopes that the UK and the EU would be able to work towards a Brexit deal before the deadline on October 31, possibly preventing a no-deal Brexit. Even though analysts cautioned that the weakness in the US dollar was momentary on account of a “buy the rumor, sell the fact” reaction, the Greenback seems to trade under pressure early on Monday so far.

The dollar’s trades were also impacted by news coming out on Friday that the Fed is planning to start buying around $60 billion in Treasury bills every month to preserve ample reserves in the American banking system. This drove further bearishness in the dollar, but it has recovered slightly since then over increased cautiousness as traders wait for real progress in trade negotiations.