US Dollar Strengthens as Markets Turn Optimistic For Tariff Cuts in “Phase 1” Trade Deal

The US dollar is trading close to a several weeks' high as optimism surrounding a US-China trade deal dominates the markets early on Monday

Written by: Arslan Butt • Monday, November 11, 2019 • 1 min read

• Last updated: Monday, November 11, 2019

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.

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.