Greg Gibbs, analyst at Amplifying Global FX Capital, points out that the market is still waiting on news from the US-China trade talks and global policymakers have blamed the US-China trade dispute for undermining global trade and manufacturing activity over the last six months or so.

“The uncertain trade environment is thought to be dampening business confidence globally and delaying investment decisions. There are market doubts that a US-China trade deal will be durable.  The market also worries that even if the US and China resolve their trade dispute, the US administration will continue to use threats of tariffs against other trading partners, in particular, Europe.  Japan and the US are also expected to begin trade talks this week. Nevertheless, it is possible that a US-China trade deal will be agreed soon, both parties have claimed to have made considerable progress.”