US recap: Dollar slips as shares hit fresh record highs 

The dollar declined along with other haven currencies on Monday as US stocks rallied on optimism about easing US-China trade tensions, strong corporate earnings, and expectations of a Fed rate cut on Wednesday.

China hopes the United States can meet it halfway to “prepare for high-level interactions” between the two countries, foreign minister Wang Yi told US Secretary of State Marco Rubio in a phone call on Monday, China’s foreign ministry said.

Asian currencies generally outperformed amid a strengthening yuan, with China’s securities regulator outlining plans to streamline foreign investor access with a fast-track for major funds to attract long-term capital.

China’s central bank will resume treasury bond buying and selling on the open market, People’s Bank of China Governor Pan Gongsheng said.

Russian President Vladimir Putin asked North Korean Foreign Minister Choe Son Hui to tell Kim Jong Un that “everything was going to plan” in relations.

Treasury 2-year yields edged up and implied currency volatilities slid toward multi-month lows as equities advanced.

EUR/USD rose for a fourth day to test its 21-day moving average at 1.1654. European shares closed at record highs, partly supported by an improvement in German business sentiment.

GBP/USD held a slight gain, settling in a range above the 1.33 support level.

USD/JPY hovered beneath its October high at 153.29, awaiting the outcome of event risks this week.

AUD/USD gained with techs leaning bullish amid a stronger yuan, copper rise, and stock rally.

Treasury yields were mixed as the curve steepened. The 2s-10s curve was down about 2 basis points to +49.2bp.

The S&P 500 rose 1.05%

WTI oil eased 0.16% as OPEC plans to increase oil output once again.

Gold slid 2.75% while copper edged up 0.80% amid geopolitical optimism.

Heading toward the close: EUR/USD +0.16%, USD/JPY -0.03%, GBP/USD +0.11%, AUD/USD +0.60%, DXY -0.14%, EUR/JPY +0.15%, GBP/JPY +0.15%, AUD/JPY +0.63%.

(Editing by Burton Frierson; Reporting by Robert Fullem)