Dollar Pares Drop as US-China Call Eases Trade Risk
A Bloomberg gauge of the dollar pared losses as US President Donald Trump and Chinese President Xi Jinping agreed to further trade talks. The euro touched the day’s high after European Central Bank officials cut interest rates as expected but signaled the possibility of upside risks to growth.
The Bloomberg Dollar Spot Index is little changed after falling as much as 0.4% to a year-to-date low following higher-than-forecast US weekly jobless claims data and ECB meeting, easing after reports of a telephone call between Trump and Xi.
Initial jobless claims were 247k in week to May 31 (235k expected); traders shrugged off massive narrowing in US trade balance in April.
Next focus is Friday’s US jobs report for May; headline estimate is for 125k growth in nonfarm payrolls.
EUR/USD surges as much as 0.7% to 1.1495 day’s high as ECB’s Christine Lagarde says officials are coming to the end of rate cuts, then pares rise in New York trading.
GBP/USD rallies as much as 0.5% to 1.3616 — day’s high and new 2025 high amid broad dollar weakness.
USD/JPY rises as much as 0.8% to 143.97 day’s high after Trump-Xi phone call headlines in US morning.
Source: Bloomberg
