Dollar Gains Amid Trade Optimism and Rate Speculation

The dollar is poised for a weekly gain against major currencies, influenced by a U.S.-UK trade deal and decreased expectations of Federal Reserve rate cuts. Markets are focused on U.S.-China trade talks. Euro and yen saw fluctuations, while central banks held rates. Bitcoin surged as trade optimism rose.

The U.S. dollar is concluding the week with gains against most major currencies, buoyed by a recent trade deal between the U.S. and the UK that has sparked investor optimism ahead of U.S.-China discussions. Despite the deal being limited, it reignited hopes of future tariff adjustments.

Market analysts observed the dollar's strength, fueled by declining bets on imminent Federal Reserve rate cuts after the central bank projected a wait-and-see approach. The euro and yen experienced fluctuations, while sterling retracted earlier gains following the modest U.S.-UK agreement.

As the financial world turns its eyes to the U.S.-China talks, bitcoin has mirrored the positive market sentiment, surging past $100,000, highlighting renewed risk appetite. Contrarily, some Asian currencies, notably the Taiwan dollar, experienced notable appreciation against the dollar amid geopolitical tensions.

(With inputs from agencies.)