The US dollar was strong before Christmas on positive US-China trade rhetoric. Washington and Beijing reached a phase one trade deal at the beginning of this month and President Trump has said that the two sides are extremely close to signing this.
China also announced that it will cut tariffs on hundreds of products ranging from frozen pork to high-tech parts next year, lowering trade barriers to support its economy.
The Redbook Index, which measures the growth of a sample of large US retailers, increased by 6.20% in the week ending December 21st of 2019 compared to the same week in the previous year.
However, the past 24 hours has seen the dollar fall. It could be a victim on trade talks’ success, as investors reduce their focus on risk and drift away from the US dollar. Mortgage applications and jobless claims also disappointed.
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