The US Dollar climbed against its major peers on Monday, after a meeting between US President Donald Trump and Japanâs Prime Minister Shinzo Abe went smoothly over the weekend. The meeting did not yield any results that relate to the monetary policies of both nations.
The meeting, which took place on Friday, came after a phone call between Trump and Chinese President Xi Jinping that raised expectations of smoother relations between the two countries. Traders felt more confident following the two political talks, which offset some of the negative effects that stemmed from weeks of tensing US political ties with Mexico, Iran, and Australia.
However, some traders believe that it remains too early to draw final conclusions or to feel relieved, as The United States might not tolerate the weakness of the Japanese yen against the US Dollar. Additional political moves from Trump will be required before enough clarity surrounding the policies of his administration is provided.
Closer to home, the US dollar might benefit from a statement that Federal Reserve Chair Janet Yellen will give in front of the Senate Banking Committee on Tuesday. Yellen will also give a speech before the House Financial Services Committee on Wednesday. Mentions of an interest rate increase or faster pace of rate hikes often support the greenback.
EUR/USD traded at 1.0600 as of 19:30 GMT on Monday, after touching 1.0596 at 15:30 GMT, the pairâs lowest level since January 16. EUR/USD started trading this week at 1.0634.
The Dollar Index, which measures the strength of the US currency against a basket of its major peers, was at 100.94 as of 19:32 GMT today, from 100.80 on Friday.
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