The US dollar rose in European trade on Thursday against a basket of major rivals, expanding the gains for the third straight session and hitting a two-week high amid positive developments for the US trade negotiations with major partners.

The dollar is also boosted as the odds of a US interest rate cut in May receded, with investors now awaiting important US unemployment claims and industrial data later today.

The Index

The dollar index rose 0.45% today to 100.08, marking a two-week high, with a session-low at 99.61.

On Wednesday, the index rose 0.45%, marking the second straight profit amid a positive outlook for trade negotiations.

The index lost 4.4$ in April, marking the third monthly loss in a row, and the heftiest since November 2022 as investors lost confidence in US assets.

Trade Developments

Chinese reports said the US has communicated with China recently to discuss tariffs, with President Donald Trump saying theres a high probability of reaching a deal with China.

He also pointed to potential trade deals with India, South Korea, and Japan soon, as he seeks to utilize his tariffs to force beneficial results.

US Rates

Several Fed officials dont believe theres an urgent need to review monetary policies soon.

According to the Fedwatch tool, the odds of a Fed 0.25% rate cut in May stood at just 8%.

The odds of such a cut in June stood at a healthier 65%.

Do you need help in trading decisions? Do you want to learn how to start trading?

Join Economies.com VIP Club and benefit from over 15 years of market analysis expertise and get:

Full coverage of commodities such as gold, oil, silver, and more Full coverage of all major forex currency pairs Full coverage of key global indices and stocks Full coverage of major cryptocurrencies and meme coins Accurate analysis and daily updated price forecasts Exclusive and breaking news Reliable trading ranges for effective risk management Comprehensive educational materials, competitions and prizes! Innovative tools to enhance your trading performance Special Offer: Subscribe to the Economies.com VIP channel and get also a free subscription to a trusted trading signals channel provided by Best Trading Signal.

Join Economies.com VIP Club