FX.co ★ Dollar Set to End Week Little Changed

The US dollar index softened to approximately 100.6 by Friday, closing the week with minimal changes. Initial uplift in the dollar, driven by the US-China trade agreement, was mitigated by weaker US economic figures. At the start of the week, the greenback climbed over 1% following an accord between the US and China to substantially reduce tariffs over a 90-day span, hinting at potential progress towards a comprehensive trade agreement between the two economic giants. Nevertheless, this momentum waned as the week progressed, with data indicating declining inflation and lackluster retail sales, sparking concerns about a slowdown in consumer spending. These developments led traders to anticipate further Federal Reserve rate cuts within the year. Additionally, the US dollar experienced declining pressure against various Asian currencies, notably the South Korean won, amid speculation that the US might be strategically allowing a weaker dollar during ongoing trade discussions.