The dollar fell to two week lows yesterday, following less safe-haven demand for the greenback. This was due to renewed optimism for a trade deal between the US and China. Chinese Vice Premier Liu He said that China is willing to reach an agreement in order to prevent any further escalation of tensions between the two nations. The White House has said that the first day of talks went better than expected, and raised the possibility of a currency agreement as part of a partial trade deal.
The dollar was unaffected after data showed US consumer prices were unchanged in September and underlying inflation slipped. The report supported expectations that the Federal Reserve will cut interest rates for the third time this year.
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