US dollar heads for second weekly gains

US dollar rose in European trade against a basket of major rivals, nearing two-month highs and heading for second weekly gains as risk appetite improves in the market. 

The dollar index rose 0.1% to 96.99, with a session-low at 96.83. 

The index lost 0.1% yesterday on profit-taking away from two-month highs at 97.10. 

US retail sales for December hit September 2009 lows in pace, stoking concerns about growth this year. 

The dollar is up 0.6% so far this week, heading for the second weekly profit in a row. 

In an expected step, President Donald Trump is reportedly considering an extension to the negotiation period with China on trade for another 60 days. 

Beijing and Washington reached a 90-day truce last year to reach an agreement and avoid tariff hikes. 

The current truce is scheduled to end on March 2, with no deal still in sight. 

Chinese President Xi Jinping is set to meet the US delegation tomorrow to discuss a possible trade agreement. 

Now investors await US data, with import prices expected down 0.1%, while the Empire State Manufacturing Index is expected up to 7.1. 

US industrial production is expected up 0.1%, while the capacity utilization rate is estimated up to 78.8%.