| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 01:30 | China | PPI y/y | May | -2.7% | -3.2% | -3.3% |
| 01:30 | China | CPI y/y | May | -0.1% | -0.2% | -0.1% |
| 03:00 | China | Trade Balance, bln | May | 96.18 | 101.3 | 103.22 |
During today's Asian trading, the US dollar weakened against major currencies as optimism from a strong U.S. jobs report gave way to caution ahead of high-stakes trade talks between the United States and China, set to take place in London later in the day. The talks come at a delicate time for both countries: China is struggling with deflation, while in the U.S., ongoing trade tensions are weighing on business and consumer confidence. As a result, investors are beginning to reassess the dollar’s role as a safe-haven asset. Leading the U.S. delegation will be Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer. Vice Premier He Lifeng is expected to attend on behalf of China. Analysts remain skeptical that the meeting will produce significant progress, suggesting that unless a clear breakthrough is achieved, market sentiment is unlikely to shift meaningfully.
Friday’s employment report briefly lifted the dollar, helping it recover part of its weekly decline. Still, the U.S. currency remains more than 8.6% lower for the year. On Monday, the US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, Swiss franc, yen, Canadian dollar, pound sterling and Swedish krona) fell by 0.22% to 98.97, as yields on U.S. Treasury notes eased following their earlier rise.
Investors are now turning their attention to upcoming U.S. inflation data for May, which is expected to provide insight into how recent trade policies are affecting prices. Although the Federal Reserve is in a blackout period ahead of next week’s meeting, policymakers have signaled that rate cuts are not imminent. Market expectations suggest a potential rate reduction in October, though only if economic pressures persist.
The Japanese yen rose 0.4% against the US dollar after data showed the country's economy contracted less than expected in the first quarter.
Meanwhile, the euro rose 0.25% against the US dollar, supported by expectations that the European Central Bank will maintain a hawkish monetary stance. The Swiss franc and British pound also posted modest gains.
China’s offshore yuan dipped after export growth slowed and factory-gate deflation deepened, signaling further economic stress.