Markets are waiting for trade talks and key data this week
The US Dollar Index experienced a slight decline on Monday to trade as low as 99 points, after the gains it made in the previous session. The dollar rose on Friday following the release of the US jobs report for May, which showed growth in the employment rate exceeding expectations, although other data such as private sector employment, unemployment claims and the performance of the services sector pointed to some weaknesses in the economy.
Cautious optimism on trade negotiations
Renewed hopes for a breakthrough in trade talks between the United States and China contributed to an improvement in investor sentiment.
US President Donald Trump announced that representatives of the two countries will hold a meeting in London later today, after a phone call with his Chinese counterpart Xi Jinping.
Trump expressed optimism about the progress of the negotiations, which reinforced positive expectations in the markets, especially with speculation about the possibility of reducing mutual tariffs as a goodwill gesture to resume dialogue.
Expected economic data may reorient markets
This week, traders are turning their attention to a series of key economic data that may cause shifts in market trends. The most notable of these data are:
The Consumer Price Index (CPI), due to be released on Wednesday.
Producer price index (PPI), which will be released on Thursday.
In addition to the Consumer Confidence Report issued by the University of Michigan, expected to be published on Friday.
These figures are expected to shed light on the impact of tariffs on inflation rates and general economic conditions, which may give investors new insights into the course of the Fed's monetary policy.
Today's economic schedule
No important economic data is expected to be released today with holidays for both Australian, German, French and also Swiss banks, which makes the trade talks between Washington and Beijing the most prominent event in the market.
In the absence of other motivating factors, the eyes of market participants will remain focused on the developments of the negotiations, which may determine the trends of the dollar and world markets in the coming days.
