The US Dollar Index is holding above 99.2, experiencing support from eased US-China trade tensions. While the US government shutdown limits economic data, attention turns to upcoming earnings reports and political uncertainty in Japan is impacting the Yen.
- The dollar index hovered above 99.2 on Tuesday.
- Easing US-China trade tensions support the dollar.
- Both sides expressed willingness to resume negotiations.
- A possible meeting between President Trump and Chinese President Xi Jinping is expected.
- Trump threatened tariff hikes but later struck a more conciliatory tone.
- The US government shutdown has limited the flow of economic data.
- Investors are looking toward upcoming earnings reports from major banks.
- The greenback held firm against most major peers and extended gains versus the yen.
- Heightened political uncertainty in Japan impacts the Yen.
The information suggests a moderately positive outlook for the US Dollar. Trade optimism seems to be providing support, while the impact of missing economic data is being offset by other factors such as anticipation surrounding earnings reports and global factors such as political uncertainty impacting other currencies. This environment is allowing the dollar to maintain its value and even strengthen against certain currencies.