The U.S. dollar weakened against the euro, Chinese yuan, and Australian dollar on Monday due to optimism over a possible U.S.-China trade deal. President Trump indicated a trade deal is likely, boosting global stock markets. Argentine President Milei’s party won in midterm elections, impacting markets.

The dollar index fell to 98.87, with the euro at $1.164. Central banks will influence market direction this week, with the Fed and Bank of Canada expected to cut rates. The Chinese yuan rose as the official rate was set higher by the People’s Bank of China.

The Australian dollar rose 0.55% to $0.6549, supported by comments from the RBA Governor. Traders are focused on a meeting between Trump and Japan’s PM Takaichi, impacting the Japanese yen. Bitcoin gained 1.20% to $114,750 in the cryptocurrency market.

Read more at Yahoo Finance: US dollar slips as trade optimism boosts risk appetite