Dollar dips after jobs-fueled rally; US-China talks in focus
The U.S. dollar slipped against most major currencies on Monday, as optimism over a better-than-expected U.S. employment report was offset by caution ahead of pivotal U.S.-China trade talks set to take place later in the day.
Top officials from both countries were in London for a meeting to address disagreements around a preliminary agreement struck last month in Geneva, which had briefly cooled tensions between the world's two largest economies.
The talks come at a crucial time for both sides, with China grappling with deflation and trade uncertainty dampening sentiment among U.S. businesses and consumers, prompting investors to reassess the dollar's safe-haven status.
Data showed China's export growth slowed to a three-month low in May as U.S. tariffs slammed shipments, while factory-gate deflation saw its worst level in two years.
Customs data showed that China's exports to the U.S. plunged 34.5% year-on-year in May in value terms, the sharpest drop since February 2020, when the outbreak of the COVID-19 pandemic upended global trade.
The dollar was down about 0.2% against the Japanese currency at 144.635 yen in late morning trading after two consecutive weeks of gains.
The euro, meanwhile, was up slightly against the greenback at $1.1404, as markets continued to price in the European Central Bank's monetary policy outlook issued last week, in which it indicated it may be close to ending its easing cycle.
Sterling also rose versus the greenback, adding 0.3% to $1.3558.
New Zealand's dollar rose 0.5% to US$0.6045, while the Australian dollar was last up 0.3% at US$0.6515 in light volumes as markets were closed for a public holiday.
Source: Reuters
