Demand for the US dollar is buoyed by record highs of the S&P 500. An obvious thaw in the trade relations between Washington and Beijing boosts interest in US securities, thus enabling the capital flow from Europe to the US. This makes a negative impact on the euro/dollar pair. On Friday, the Canadian dollar is one of the worst performers in light of the dismal employment report. Meanwhile, the US dollar index is extending strength against most rival currencies. It opened the New York trade at near 98.29. Other currencies find it difficult to compete with the US dollar which can benefit from both escalation and de-escalation of the trade conflict. Market sentiment on the US dollar is likely to remain positive because the first phase trade deal will improve the outlook for the global economic growth. The euro is trading at the lowest level since October 15. On Friday, it shed 0.2% to trade at 1.1020. The prospects of the resolution of the US – China trade war knocked down the yen. It slumped to a five-month low against the US dollar. Despite the growing likelihood of the trade deal, investors take it with a pinch of salt. Some officials of the White House and other government agencies dislike the idea of lifting the tariffs introduced earlier. Today traders cheered macroeconomic data from China. Both exports and imports declined in October to a lesser degree than expected. Traders view this trade data as other evidence that recession fears are exaggerated. Later today, traders await important data from the US. A preliminary consumer sentiment index from the University of Michigan will be a barometer of consumer activity before the start of Christmas sales. Today, buyers of the Canadian dollar are especially concerned. Traders anticipated a batch of data on Canada’s labor market to figure out how much the dovish stance of the Canadian regulator is justified. Besides, the data today will shed light on a further agenda for monetary policy. The focal point is an employment report. It reads that the number of employed people decreased in October after a notable increase a month earlier. Canada’s jobless rate remains at 5.5%. The loonie steeply dropped following the weak data. The USD/CAD pair surpassed the level of 1.32 with prospects for a further climb.