The dollar held the upper hand against its rivals on Wednesday, particularly versus traditional safe-haven currencies, on rising hopes for a U.S.-China trade deal and a string of solid U.S. economic data.
Against the yen, the dollar traded at 109.08 yen, down slightly on the day but still not far from its October high of 109.285. The euro stood at $1.1073, having dropped 0.49% on Tuesday and was not far from a near three-week low of $1.10635 hit in U.S. trade on Tuesday. GBP/USD witnessed downside pressure as pessimism surrounding the US-China trade deal keeps the greenback strength intact.
The EUR macro calendar today is likely to be dominated by the Eurozone and German Services PMI readings that will drop in around 09:00 GMT. Also, the ECB-speak and Eurozone Retail Sales will offer some trading incentives to the market, as all eyes remain focused on US-China trade-related developments and UK political drama heading into the December 12 general election.
In the NA session, the speeches by the US Federal Reserve officials Evans and Williams will be closely eyed, in absence of relevant first-tier macro news from the US, as speculations that the Fed will stop cutting rates any further.
Oil prices fell on Wednesday in Asia as a big U.S. crude build overshadowed positive Sino-U.S. trade news, while Gold prices rebounded after falling 2% in the previous session as markets embraced risk following the latest trade news.