The U.S. dollar edged higher on Tuesday, attempting to snap a four-day losing streak amid the back-and-forth trade dispute between the U.S. and China.
The ICE U.S. Dollar Index, DXY, -0.02% a measure of the greenback’s strength versus six trading rivals, was up 0.1% at 97.391.
Read: U.S. stock futures point to bounce on heels of trade-related selloff
What are analysts saying?
“The broad value of the USD is trading a touch higher towards the end of the London morning,” said Stephen Gallo, head of FX Strategy at BMO Capital Markets.
“Judging by the moves in other G-10 currencies, it looks as if the main reason for the higher open and intraday gain in the index has been a weaker JPY. But overall, EM currencies have faced less pressure to depreciate thus far today, and this has put a lid on broad USD strength.”
The Japanese yen USDJPY, +0.29% fell to ¥109.69 compared with ¥109.30 late Monday.
The fall in the yen came as U.S. equities pointed to a higher open after yesterday’s bloodbath.
Dow futures YMM9, +0.65% were up 0.7%, while S&P 500 futures ESM9, +0.74% gained 0.9%.
Late Monday President Donald Trump said that details of the trade relationship would be clear in the coming weeks, adding, “I have a feeling it’s going to be very successful.”
Read: Here are the stocks to buy if an all-out U.S.-China trade war erupts, says Goldman
Euro steady after weak ZEW
German business confidence fell in May with a popular index slipping into negative territory. The ZEW economic sentiment fell to -2.1, down from 3.1 in April.
“EURUSD saw some muted downward pressure as the ZEW Economic Sentiment figures revealed a negative outlook on the future growth of Germany and the eurozone amid the recent escalation in trade wars between the U.S. and China,” wrote Daniela Sabin Hathorn, analyst at Daily FX.
“Consequently, this has halted the recent upside in the pair, which had been supported from the depreciation in the dollar following the latest trade war developments.”
The euro EURUSD, +0.0980% was unchanged at $1.1233.
Meanwhile, the British pound GBPUSD, -0.0695% was a little lower at $1.2946.
On the calendar
It’s a relatively quiet day on the data front. Earlier in the session, the National Federation of Independent Business said its small-business optimism index rose 1.7 points to 103.5, its highest level in four months.
Later this morning, import price data for the month of April is scheduled for release.
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