The U.S. dollar held firm against major currencies on Monday as investor focus shifted from upbeat jobs data to upcoming U.S.-China trade talks in London. While Friday’s strong employment report briefly boosted the dollar, markets remain cautious amid ongoing economic uncertainties.
The high-level meeting between Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer on the U.S. side, and Vice Premier He Lifeng from China, comes at a critical time. China faces deflation concerns, and U.S. businesses are showing signs of stress due to prolonged trade tensions.
Analysts noted that unless the talks yield substantial results, any boost to market sentiment is likely to be limited. The dollar index was stable at 99.169, still down over 8.6% year-to-date. Treasury yields also held steady in early Asian trading after a sharp rise on Friday.
The yen edged up 0.10% to 144.750 per dollar as Japan’s GDP showed a milder-than-expected contraction. The euro remained flat at $1.1399, while the British pound traded at $1.3535. The Swiss franc was unchanged at 0.8221.
The Australian dollar gained 0.1% to $0.65, and the New Zealand dollar hovered at $0.6020 in light trading due to a holiday in Australia.
Markets are now eyeing May U.S. inflation data, which could provide fresh insights into the economic impact of Trump’s 10% universal import tariff. Although the Fed is in a blackout period ahead of its policy meeting, officials have signaled caution on rate cuts. Futures suggest a potential 25 basis-point cut may occur in October.
China’s offshore yuan last traded at 7.187 ahead of key domestic inflation and trade data releases this week.


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