Dollar Dips Ahead of Crucial U.S.-China Trade Talks
The U.S. dollar weakened against major currencies due to cautious investor sentiment before significant U.S.-China trade discussions in London. This comes after a positive U.S. employment report provided some temporary strength to the dollar. Key U.S. officials are attending, but concrete results are still uncertain.
The dollar slipped against all major currencies on Monday as investor euphoria following a positive U.S. employment report moderated into caution ahead of significant U.S.-China trade negotiations in London. The talks are critical, with China facing deflationary pressures and U.S. sentiment dampened by trade uncertainty.
Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer are set to lead the U.S. delegation, while Vice Premier He Lifeng is anticipated to represent China. "A mere agreement to continue talks might be insufficient unless a tangible breakthrough occurs, as market sentiments may remain unchanged," stated Charu Chanana of Saxo Markets.
Following Friday's strong U.S. jobs report, the dollar made gains against major currencies, cutting weekly losses. Despite this, the dollar has decreased over 8.6% over the year. Amid global economic shifts, currencies such as the yen and euro have moved upwards, while interest rates and inflation reports remain focal points for investors.
(With inputs from agencies.)
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