On Tuesday, the US dollar index opened the Wall Street session, making efforts to recover. Traders were pleased with the news on some progress in the trade dispute between the US and China.
Yesterday, the Chinese government said that it will cut import duties on passenger cars as of July 1 to 15% from the current 25%. Besides, levies on some spare parts will be reduced to 6%.
The news was certainly bullish for the US dollar. Its index rebounded to nearly 93.55. However, market participants are in the wait-and-see mood amid expectations for the minutes of the latest policy meeting of the Federal Reserve.
On Tuesday, the US dollar gained ground against its Canadian counterpart. The USD/CAD pair breached 1.2780. Earlier, the Canadian currency fell in value as a result of speculations that the US could insist on tougher trade relations.
Meanwhile, the macroeconomic background in Canada provided its national currency with support. According to the official data, wholesale sales rose 1.1% in March month-on-month after a decline by 0.4% in February. The fresh reading surpassed expectations for a more moderate advance by 0.8%. Another bullish factor for the Canadian dollar is a steady rally of oil prices which allows the loonie to show resilience to its American counterpart.
Today, the main market-moving event is the minutes of the Federal Open Market Committee. Experts say traders are ready for bullish bets on the US dollar.
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