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.