Dollar Strengthens Amid Anticipation of Federal Reserve Rate Hikes and Trump-Xi Summit
The U.S. dollar has risen for the fourth consecutive day, supported by higher U.S. Treasury yields and growing expectations of Federal Reserve rate hikes. Investors are increasingly pricing in the likelihood of rate increases, with a 35% chance of a December hike, up from 16% a week ago. This shift is driven by recent inflation data showing significant price increases, prompting concerns about a potential surge in inflation. Concurrently, a two-day summit between President Trump and China's Xi Jinping is underway, focusing on trade talks. The summit has seen the Chinese yuan strengthen against the dollar, reflecting market optimism about progress in trade discussions. 
