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US Dollar Trades Weak as Markets Look Forward to the Phase One Deal

The US dollar continues to trade under pressure but is edging higher into a brand new year amid an improvement in market sentiment about the US and China signing the phase one trade deal soon, driving investors away from the greenback and into riskier assets. At the time of writing, the US dollar index DXY is trading at around 96.55.

Amid fading trade tensions, markets are also concerned about whether the US economy can sustain its expansionary phase into 2020, keeping the US dollar bearish. In December 2019, the greenback lost around 1.9% of its value as a result of diminishing trade tensions.

The dollar is also trading cautious on Thursday as markets anticipate the release of the FOMC meeting minutes later today. Markets will get a sneak peek into the minutes of the Fed’s December meeting, and it will be interesting to see how the US central bank is expected to position itself in the coming year.

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Arslan Butt
Index & Commodity Analyst
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.
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