Dollar steady as traders await details from US-China talks

Lead: The U.S. dollar remained stable on Tuesday as Washington and Beijing continued trade negotiations in London. Investors are cautious, awaiting concrete outcomes from the talks, which address issues ranging from tariffs to export controls.

Key Developments

• U.S.-China trade talks in London extend to a second day, focusing on tariffs, rare earths, and export controls.
• Both economies show signs of strain amid ongoing disputes.
• Investors await U.S. inflation data due Wednesday, which could influence Federal Reserve policy.

Market Reaction

• Dollar little changed against yen at 144.57; euro at $1.1425; sterling at $1.3563.
• Dollar index steady at 98.986, near a six-week low.
• Australian and New Zealand dollars remain flat or slightly firmer.

Expert Insight

“The extension of talks and some positive soundbites from the U.S. officials could offer short-term relief, markets are unlikely to buy into this optimism without real structural progress,” said Charu Chanana, chief investment strategist at Saxo.

“Unlike the Geneva talks, where tariff relief provided easy wins, the London talks are now tackling thornier issues like chip export controls, rare earths, and student visas. These are long-term, strategic matters—not easily resolved over a few days. That makes it harder to deliver a positive surprise.”

Looking Ahead

Investor focus will be on the U.S. consumer price index report for May, due Wednesday. The data could provide insight into the impact of tariffs and trade tensions on inflation and influence the Federal Reserve’s upcoming policy decisions.

Source & Attribution

Source: Reuters