Early on Monday, the US dollar is trading close to a several weeks’ high as optimism surrounding a US-China trade deal dominates the markets. At the time of writing, the US dollar index DXY is trading at around 98.38.

Towards the end of last week, officials from the US and China had announced the possibility of cutting some of the tariffs announced on each other’s imports when the trade war had been escalating. This served to boost the market sentiment which had already been somewhat cautiously optimistic in anticipation of the “Phase 1” trade deal.

While US President Donald Trump later sounded less enthusiastic than expected about the rollback of tariffs on Chinese goods, he did express hope for a trade deal that was best suited to US’s interests. Any reduction in tariffs could serve to boost demand and economic growth in not just in the US and China, but in leading economies around the world.