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US Dollar Slips Slightly as Markets Await Outcome of US–China Trade Talks in London
The US dollar declined slightly today as global markets closely monitor the outcome of the second round of trade negotiations between the United States and China, held in London.
Investors are anticipating results from the high-level discussions focused on easing trade restrictions between the two economic giants, particularly in key sectors such as semiconductors and rare earth metals.
Why the US Dollar Is Under Pressure
The dollar came under mild selling pressure as uncertainty looms over whether the ongoing talks will produce a meaningful agreement to reduce tensions between Washington and Beijing.
Market analysts note that the dollar remains sensitive to shifts in global investor sentiment, especially in response to geopolitical and economic developments involving major powers.
Oil Prices Rise Amid Cautious Optimism
Alongside the dollar’s dip, oil prices climbed more than 1% during today’s trading session, driven by hopes that the trade talks will ease tensions and improve global energy demand.
Brent crude reached its highest level in over seven weeks, signaling that investors are positioning themselves for a potentially positive outcome from the discussions.
US–China Trade Talks: What’s at Stake?
The second round of US–China trade negotiations kicked off today in London, involving senior officials from both sides.
China is reportedly seeking concessions on technology exports, particularly semiconductors, while the United States is looking for clear commitments on export regulations and import volumes.
A senior White House official described the talks as "constructive," though no official agreements or outcomes have been announced yet.
Weak Chinese Export Data Adds Pressure
Recent Chinese customs data for May revealed a significant 34.5% year-over-year drop in exports — the sharpest monthly decline since the height of the COVID-19 pandemic.
This sharp fall underscores the economic pressure Beijing is under amid ongoing trade restrictions and US tariffs, further highlighting the importance of productive negotiations.
