The US dollar index had a positive day in yesterday’s trading session. One of the reasons is probably the lack of news about the meeting between Trump and Xi Jinping. On top of that, Trump told Republican lawmakers that he wouldn’t settle for anything less than an “excellent deal.” However, Trump’s top trade negotiator, Robert Lighthizer, and Treasury Secretary, Steven Mnuchin, are due to continue the trade talks in China tomorrow. Right after that, in the following week, China’s Vice Premier, Liu He, is anticipated to arrive in the US.
To add more to the noise around the US dollar, Stephen Moore, a Trump nominee to serve on the Fed Board, has said that the Fed should cut rates by 50 points now, adding that the December hike was "inexplicable." Furthermore, San Francisco Fed Chief Mary Daly urged patience before deciding which way to move, saying literally, “…Patience is where I’m at right now,” in yesterday’s declaration.
There is not much in terms of critical economic data today, but there will be an appearance from Kansas City Fed President Esther George after the FX market close (around 5:00 pm Est). She is known to be “Hawkish,” so it will be interesting to see the contrast of her declaration compared with Daly and Moore’s.