Dollar Steady Amid Upcoming U.S.-China Trade Talks

The dollar maintained its stability against major currencies ahead of significant U.S.-China trade talks in London. While an optimistic U.S. jobs report bolstered the dollar, uncertainty surrounding trade relations has investors reassessing its status. Key representatives from both countries will be part of discussions.

The dollar remained stable against key global currencies on Monday, with the focus shifting to impending U.S.-China trade discussions scheduled for later in the day in London. Investors are exhibiting caution despite earlier optimism driven by a positive U.S. employment report.

These talks occur at a critical juncture as China contends with deflationary pressures and trade-related anxiety impacts U.S. business and consumer outlooks. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer will represent the U.S., while China's vice premier He Lifeng is expected to lead the Chinese delegation.

The firm stance of the dollar follows a strengthening against key peers after the job report, although yearly declines persist. Attention is now turning to upcoming U.S. inflation data, amid Fed policy decisions looming next week, as investors seek clarity on trade policy impacts.

(With inputs from agencies.)