The U.S. dollar weakened against the euro, Chinese yuan and Australian dollar today as optimism over a possible U.S.-China trade deal boosted risk appetite and reduced demand for the greenback.

Overall moves in the currency markets were relatively muted as traders also waited on several key central bank meetings this week.

President Donald Trump said today the United States and China were set to “come away” with a trade deal. Trump is expected to meet Chinese President Xi Jinping this week in South Korea.

“The market’s kind of euphoric,” said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York, noting strong gains in global stock markets while gold fell.

The markets are cheered by three main developments, Chandler said.

“It looks like the U.S. and China move

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