The US Dollar held steady so far on Tuesday as investors awaited the outcome from the highly anticipated US-China trade negotiations later this week. The overnight positive remarks by White House economic adviser Larry Kudlow helped ease some anxiety led by earlier reports that Chinese officials were increasingly reluctant to agree to a broad trade deal pursued by the US President Donald Trump.
The positive market reaction, reinforced by some follow-through pickup in the US Treasury bond yields, weighed on the Japanese Yen's perceived safe-haven status and provided a goodish lift to perceive riskier currencies.
Meanwhile, the British Pound remained depressed amid persistent uncertainties surrounding Britain's exit from the European Union, especially after the EU rejected the UK PM Boris Johnson's new Brexit proposal.
The Dollar edged lower on the Euro to steady around $1.0971 as the single currency slowly climbs from a 2-1/2 year low hit last week.
Tuesday's economic docket features the second-tier release of German industrial production data. This will be followed by speeches by the Bank of England (BoE) Chief Economist Andy Haldane and External MPC Member Silvana Tenreyro. Later during the early North-American session, the release of the US Producer Price Index (PPI) might influence the USD price dynamics and further collaborated towards producing some short-term trading opportunities.
Oil prices gained on Tuesday as traders await the outcome of this week’s high-level U.S.-China trade talks.
Gold remains depressed below $1,500 mark, multi-day lows failing to capitalize on last week's solid rebound from two-month lows. A goodish pickup in the US Treasury bond yields provided a modest lift to the US Dollar, which eventually turned out to be one of the key factors exerting pressure on the dollar-denominated commodity - Gold.