Dollar gives up 3-week high on profit taking

The US dollar fell against a basket of currencies on Monday, to head for the first daily loss in the six days, while giving up the 3-week high on profit-taking, in addition to the hopes about the first phase of the US-China trade deal fading.

The dollar index fell by more than 0.2% to 98.14 points, after opening at 98.37, with an intraday high of 98.38.

The index gained 0.3% on Friday, in its fifth straight daily gain, and hit a 3-week high of 98.40 points, to reflect the dollar pause against a basket of currencies.

During last week, the dollar index gained 1.3%, and posted the second weekly gain in 3 weeks, and the largest since August.

This broad rally by the US dollar is due to hopes about the trade talks in addition to the continued positive data on the US services sector, which lowered the odd for the US Federal Reserve to cut the interest rates for the fourth time during this year.

These market's hopes about the first phase of the US-China trade deal were ebbed afterwards, especially after Trump's recent remarks.

President Donald Trump said on Saturday that the trade talks with China are going "very nicely", and the US won't make a trade deal with Beijing unless it's the right deal for America.

Trump also denied the reports about a complete rollback of the Chinese tariffs as part of the first phase of the trade deal.