According to ChainCatcher, the U.S. dollar is heading for its biggest weekly drop in three months as investors question the "Trump deal." The U.S. dollar index DXY fell nearly 0.2% in Asian trading on Friday, extending its weekly decline to 1.1%.
The dollar weakened against most G10 currencies this week, with the biggest drop against the yen. Mingze Wu, a trader at StoneX Financial, said the market is looking for the dollar's direction and expects the dollar to fluctuate sideways before Trump takes office in January next year.
The dollar's gains have stalled as Trump's comments on social media have roiled markets and his policies could hurt the economy. Citigroup's index shows that long dollar positions may be overextended.