The US dollar rose in early Asian trading on Monday after weekend talks between the United States and China helped calm fears of a trade war. Officials from both countries met in Geneva and announced a deal aimed at reducing the US trade deficit with China. More details about the agreement are expected on Monday.
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Investors Focus on US Economic Data
This week, traders will be watching US earnings reports and key economic updates, including the Consumer Price Index (CPI) on Tuesday. These figures could show how much the recent trade tensions have affected the US economy.
Chris Weston, head of research at Pepperstone, said the dollar is showing strength, especially against the Swiss franc (CHF), Japanese yen (JPY), and the euro (EUR).
Global Tensions Cool
Markets were also supported by signs of easing geopolitical risks. India and Pakistan agreed to a ceasefire after several days of conflict. Meanwhile, Ukraine’s President Zelenskiy said he is ready to meet Russian President Putin in Turkey on Thursday—their first direct talks since early in the 2022 conflict.
See more related articles: USD/JPY Surges 2% as US-China Trade Deal Weakens Safe-Haven Yen
Currency Market Snapshot
- US Dollar Index: Up 0.2% in early Asia trading (though still 3.6% lower since April 2)
- USD/JPY: Up 0.3% to 145.85 yen
- NZD/USD (Kiwi): Up 0.2% to $0.5921
- EUR/USD: Down 0.2% to $1.1226
- AUD/USD: Up 0.19% to $0.6424
