The dollar strengthened yesterday as President Trump tweeted to say that the US are very close to securing a trade deal with China. The markets reacted to this renewed optimism on the hope that a phase one agreement may be reached before a scheduled tariff increase kicks in on the 15th of December. The tweet also raises hopes that even if a deal isn’t made, the tariffs may be delayed.
It could be worth noting that this kind of rhetoric has previously resulted in a lack of solid outcome. However, as we approach the deadline on the 15th, there may be more clarity on whether a phase one deal will be secured.
Today, we’ll see retail sales data for the US, which is expected to rise 0.5% month-on-month.
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