The dollar eased back weekly gains on Friday, as news that U.S. President Donald Trump had spoken to Chinese President Xi Jinping increased investor appetite for riskier assets and traders waited for jobs data later in the session.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.17% to 96.11 as of 4:59 AM ET (8:59 GMT).
Trump and Xi spoke on the phone regarding trade on Friday, boosting sentiment that a trade deal will be reached when the two meet at G-20 summit later this month.
The news helped drive an equity rally, after a difficult October for global stock markets.
Investors are also waiting for nonfarm payrolls data, which is released at 8:30 AM ET (12:30 GMT). A better than expected number could boost the greenback, as it would support the Federal Reserve increasing interest rates in December.
The dollar rose against the Japanese yen, with USD/JPY up 0.15% to 112.88. The Canadian dollar was slightly higher, with USD/CAD down 0.25% to 1.3054.
The euro was boosted higher by the lower dollar, with EUR/USD rising 0.22% to 1.1432. The euro has been under pressure all week by political uncertainty in Germany and an ongoing feud between Rome and Brussels over Italy’s budget.
Sterling was higher with GBP/USD inching up 0.09% to 1.3025 as news of a possible Brexit deal as early as Nov. 21 boosted sentiment.
Elsewhere the Australian dollar was higher, with AUD/USD gaining 0.40% to 0.7235 and NZD/USD increasing 0.12% to 0.6663.
