Dollar tries to recover from 2-week low amid mixed trade news

The US dollar rose against its rivals during the European session on Tuesday, to head for its first daily gain in 4 days, in recovery attempts from 2-week low, amid conflicting news about the US-China trade talks, and ahead of important data about the US housing market.

The dollar index rose by 0.1% to 97.89 points, after it opened at 97.81, and hit an intraday low of 97.75.

The US dollar lost 0.15% yesterday, to post its third straight daily loss, and hit a 2-week low of 97.68, as sell-off continued on the US currency against a basket of currencies.

Markets are closely monitoring the continued developments in the US-China trade talks, amid conflicting news about the first phase of the trade deal.

President Trump administration on Monday issued new extension by 90 days for the US companies exemption to continue supplying the Chinese tech giant "Huawei" with necessary products.

Otherwise, CNBC quoted a Chinese government source on Monday that the mood in Beijing about a trade deal is pessimistic as Chinese officials are concerned over President Donald Trump denying agreeing to roll back tariffs.

Investors await several key data on the US housing sector later today, which is one of the most important sectors in the country, should the data came positive the US dollar will continue its recovery from the 2-week low.

At 13:30 GMT, the building permits reading will be released, with forectas to hold at 1.391 million in October with little change from the previous reading, and the housing starts is expected to rise to 1.320 million vs. 1.256 million.