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U.S. Dollar Turning In Lackluster Performance As Traders Digest Trade Deal News

Following the modest weakness seen last Friday, the U.S. dollar has turned in a lackluster performance during trading on Monday.

The U.S. dollar is trading at 109.59 yen compared to the 109.38 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is valued at $1.1143 compared to last Friday's $1.1121.

The choppy trading came as traders continue to digest last week's news that the U.S. and China have finally reached an agreement on a phase one trade deal.

The agreement, announced by U.S. and Chinese officials last Friday, includes suspending planned tariffs on Chinese goods as well as scaling back existing tariffs in exchange for Chinese structural reforms and purchases of U.S. goods.

The trade deal eliminates a lot of uncertainty, although traders still seem somewhat wary as they await more details about the agreement.

Additionally, the agreement does not completely end the U.S.-China trade war, as some tariffs will remain in place as negotiators begin phase two talks.

On the U.S. economic front, a report from the National Association of Homebuilder showing a substantial improvement in homebuilder confidence has added to the positive sentiment on Wall Street.

The report said the NAHB/Wells Fargo Housing Market Index spiked to 76 in December from an upwardly revised 71 in November.

Economists had expected the index to come in unchanged compared to the 70 originally reported for the previous month.

With the unexpected jump, the housing market index reached its highest level since hitting 77 in June of 1999.

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