The US dollar rose marginally against a basket of currencies during the European session on Wednesday, on the cusp of its first daily gain in 3 days, after news that the US is close to delaying the next Chinese tariffs hike, while investors await more details on the outcome of the ongoing trade talks, this comes ahead of major US inflation data for November, and the Federal Reserve rate decision at the end of its last meeting for this year.
The dollar index rose less than 0.1% to 97.60 points, after it opened at 97.51, and hit an intraday high of 97.48.
The US dollar fell by 0.15% yesterday, in its second straight daily loss, to reflect its continued drop due to investors' risk-aversion.
The Wall Street Journal reported on Tuesday that the US and China are close to delaying the next tariffs hike, in efforts to reach a trade deal.
While investors await more details on the outcome of the ongoing trade talks between officials from both countries.
Investors are also anticipating the US Federal Reserve's rate decision later today at the end of its last meeting for this year, in addition to major US inflation data releases for November.
At 13:30 GMT, the US economy will release its CPI annual reading for November, with forecasts for a rise by 2.0% vs 1.8% in October, and the monthly reading is expected to rise by 0.2% vs. 0.4%.
The US Federal Reserve will unveil its interest rate decision later today, with most forecasts for the bank to hold the rates unchanged around 1.75%, within the bank's assessment of the three cuts that were delivered during this year.
At 19:00 GMT the US Fed will unveil its interest rate decision, the monetary policy statement, and the Fed's economic outlook, and will be followed by Fed Chair Jerome Powell's speech by 19:30 GMT.
Markets will be on lookout for strong hints about the chances of the Fed to ease the monetary policy and make further rate cuts during 2020.