US Dollar Trading Steady Over Hopes of US-China Trade Negotiations
Arslan Butt • 1 min read
Early on Tuesday, the US dollar continues to trade steady over recent comments from both US and China served to calm some tensions surrounding the most recent flare-up in tensions. At the time of writing, the US dollar index DXY is trading at around 97.98.
While addressing the media at the G7 summit on Monday, US President Donald Trump confirmed that US and China trade teams were in touch with each other as they were trying to restart negotiations over the trade deal. Earlier during the day, Chinese Vice Premier Liu He had also called for “calm” negotiations towards resolving the trade dispute.
These statements came out sounding far more optimistic after Friday’s retaliatory tariff hike announcements from both sides, and provided some support to the US dollar. DXY had gained 0.4% during trading on Monday, but has fallen a little lower since then.
However, markets continue to remain tense overall because of the ongoing trade war as concerns of a possible slowdown in global economy come to the fore. Escalating trade tensions between the two world leaders is putting pressure not just on their respective economies but also on other leading economies worldwide. As the trade war escalates, the risk of a possible recession also continues to grow, keeping uncertainty high in global financial markets.