USD Strengthens as Trump Touts China Trade Deal; Oil Rises, Equities Dip

The US dollar is positioned for potential gains as President Trump announced on Fox News that China will open its market in stages, commit to purchasing US agricultural products and oil, and receive shipments through Texas, Louisiana, and Alaska ports. The developments signal a de-escalation in US-China trade tensions, which historically supports USD strength against risk-sensitive and commodity-linked currencies. Oil prices rose on the back of anticipated Chinese purchases, lending support to CAD and NOK, while equity futures turned lower as markets adopted a cautious stance amid uncertainty over implementation details. The mixed signals — bullish energy prices but declining equity futures — suggest traders are weighing optimism on trade progress against execution risk. USD/CNH is likely to see heightened activity as specifics of market-opening stages emerge. For USD/JPY, the risk-off tone from falling equities could provide yen support, capping dollar upside against the Japanese currency. Traders should monitor follow-through on trade commitments and upcoming economic data for directional confirmation across major pairs.