Asian session review: the US dollar is showing negative dynamics

During today's Asian trading, the US dollar declined slightly against major currencies after yesterday's rally, triggered by news of a trade deal between the US and UK and hopes for progress in the upcoming negotiations between the US and China.

The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) fell by 0.12% to 100.53. Yesterday, the index added 1.03%, and was on track for the third consecutive weekly increase (+0.5%). Financial markets are focused on upcoming trade negotiations between Washington and Beijing, set to begin Saturday in Switzerland. Optimism rose after the U.S. and UK reached a modest trade deal, although it offered only limited concessions, such as easing U.S. tariffs on British car exports and slightly improving agricultural access. The dollar's rise reflects hopes that more tariff agreements are achievable, while signs of easing trade tensions, especially with China, are encouraging markets. President Trump expressed optimism about the upcoming talks and hinted at potential tariff reductions on Chinese goods, though the White House dismissed reports of a major cut as speculative. Earlier this week, the Fed left interest rates unchanged, and Fed Chair Jerome Powell highlighted economic uncertainty, which pushed market odds of a June rate cut down from 55% to 17%.