Fundamental Comment

Dollar little changed amid uncertainty surrounding trade agreement

Dollar little changed amid uncertainty surrounding trade agreement

The U.S. dollar was little changed on Tuesday amid uncertainty about the China-U.S. trade agreement, as traders are waiting for clarity on the developments of (phase1) of the trade deal.

According to CNBC report, Beijing is currently pessimistic about the trade agreement with the United States as officials in China saw U.S President Donald Trump's comments on tariff hikes as troubling.

As of 11:15 GMT, the U.S dollar index, which measures the performance of six major currencies against the greenback, traded near the session’s opening at 97.71, following its plunge over the three previous sessions.

The dollar has come under selling pressure since hitting a high of 98.28, the highest level since mid-October, where it fell to 97.53 the previous session.

The Trump administration issued a new 90-day extension allowing US companies to continue dealing with China’s Huawei Technologies until setting a framework for telecommunications firms that pose a jeopardy to national security.

Despite lack of any updates, traders are still hoping the United States and China would sign the so-called "phase one" this month to curtail their 16-month trade war.

Later in the day, the U.S. will release housing data for October, while Bank of New York President John Williams will speak at The Capital Markets Conference in Washington DC.

The Euro STOXX 600 gained 0.6 percent to 408.46, hovering near its highest level since May 2015.

Safe-haven gold, on the other hand, retreated from a top of $1475.30 an ounce to $1466, with key support present at $1463.50.

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