Key Points:
Asian currencies and gold show limited movement amid ongoing US-China trade talks in London.
Oil prices edge higher on hopes of a trade deal.
Asian currencies are experiencing minimal fluctuations as trade negotiations between the US and China continue in London. According to Commerzbank, markets are consolidating while officials from both nations extend discussions into a second day. US Commerce Secretary Lutnick described the dialogue as “fruitful,” and Treasury Secretary Bessent noted progress with China.
The dollar remains a focal point for investors. The WSJ Dollar Index rose 0.4% on Friday following a robust US jobs report, though it is still down 6.97% year-to-date due to fiscal deterioration and tariff policies. Notable currency pairs include USD/JPY, which fell 0.1% to 144.42, while USD/KRW stayed stable at 1,354.75, and USD/MYR increased 0.1% to 4.2357.
Gold prices are nearly unchanged in the Asian session, with cautious risk appetite due to trade uncertainty. Gold is trading at $3,326.11 per ounce as traders assess positive signals from London that may lead to concrete progress in US-China negotiations. Fadi Al Kurdi of FFA Kings commented, “Investors are keeping gold on their radar as a hedge against any deterioration in bilateral relations or weak macro data.” Support for gold also comes from US fiscal concerns, limiting the dollar’s upside potential. However, ETF outflows continue to weigh on physical gold and futures contracts.
Oil prices are slightly higher, with markets focused on diplomatic developments. Hope for a partial agreement between Washington and Beijing could ease global demand risks, according to Exness. WTI futures gained 0.1% to $65.35 per barrel, and Brent rose similarly to $67.12. Despite optimism, weak Chinese trade data, including crude exports and imports, keeps analysts cautious. Li Xing of Exness stated, “Fundamentals remain mixed, but any progress between the US and China would put oil on the radar of managers as a cyclical recovery asset.”
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