US Dollar Trades Under Pressure as News of Brexit Deal Boosts Euro, Pound

The US dollar is trading weak after falling sharply against the Euro and the Pound on Thursday following news reports that a Brexit deal has been reached between Britain and the EU. At the time of writing, the US dollar index DXY is trading around 97.59.

News of the long-awaited Brexit deal sent the Euro and the Sterling soaring during Thursday’s session, and the optimism continues into early trading on Friday as well. However, there is still some uncertainty on whether UK PM Boris Johnson will be able to get his latest deal passed through the Parliament ahead of the upcoming October 31 deadline.

The US dollar is also trading under pressure on the release of China’s Q3 GDP, which weakened by more than expected to touch 6.0%. The prolonged trade war has weighed heavily on global markets over the past few months, dictating the market sentiment. The latest release reveals that economic growth in China has also started to slow down severely on account of the tariffs war.

Early on Thursday, the greenback had been trading bearish following the release of a disappointing retail sales report from the US for September. The trade war sentiment is likely to continue dictating moves in the dollar, as any positive development on the trade deal negotiations could turn things around and boost the appeal of the US dollar in the coming weeks.