Positive developments in US-China trade talks lifted market sentiment at the start of the week, overshadowing a lack of high-tier macroeconomic data. Investors are now focusing on headlines related to US-China relations, as well as remarks from central bank officials.
US Treasury Secretary Scott Bessent described the first round of official talks between US and Chinese representatives in Switzerland as “productive and constructive.” China’s Vice Premier He Lifeng also referred to the discussions as “in-depth” and candid. Bessent is expected to provide further details during a press briefing at 07:00 GMT on Monday.
Reflecting the upbeat market mood, US stock index futures gained between 1% and 2%, while the US Dollar Index remained positive, staying above the 100.50 mark after a marginal increase for the third consecutive week. On Tuesday, investors will look for the US Bureau of Labor Statistics’ Consumer Price Index (CPI) data for April, which could provide further direction.
Gold remained under bearish pressure, hitting a fresh weekly low below $3,300 as the stronger risk appetite weighed on safe-haven demand.
The euro struggled to gain momentum, with EUR/USD staying in negative territory below 1.1250 at the start of the European session. Meanwhile, USD/JPY continued to climb, reaching its strongest level in a month near 146.00 after a modest bullish gap at the beginning of the week.
GBP/USD remained relatively stable, fluctuating within a narrow range around 1.3300. Traders will turn their attention to the UK’s April employment data, set for release by the Office for National Statistics on Tuesday.
Despite the renewed strength of the US dollar, AUD/USD managed to maintain modest daily gains above the 0.6400 mark.
USD/CAD remained in a consolidation phase above 1.3900 after rising nearly 1% during the previous week. On Friday, Canada’s April unemployment data showed an increase in the jobless rate to 6.9% from 6.7% in March, which may influence the pair’s next moves.
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