US Dollar Weakens as Risk Currencies Find Favor Among Traders
Arslan Butt • 1 min read
Early on Monday, the US dollar has edged slightly lower over rising optimism about the US and China getting ready to sign the phase one trade deal soon. At the time of writing, the US dollar index DXY is trading around 96.81.
Last Friday, the US dollar slid around 0.6% lower, falling below the 97 level against its major peers. So far in 2019, the greenback is set for the smallest annual gain seen since six years.
An improvement in the risk sentiment since the announcement of the partial trade deal has seen the safe haven appeal of the US dollar diminish as traders switch to riskier currencies like the AUD and NZD. Ever since the phase one agreement was confirmed, the Japanese yen has also weakened considerably over fading safe haven appeal.
Over the past week, despite the holiday season, US President Donald Trump announced that there will be a signing ceremony which will be attended by him and his Chinese counterpart, Xi Jinping. China also confirmed that both sides are in close communication regarding the phase one deal.