Jun 10, 2025
The dollar rises due to positive trade discussions, while the pound is affected by disappointing employment figures.
The U.S. dollar gained on Tuesday, supported by indications that tensions between China and the U.S. might be easing as trade discussions extended into a second day.
As of 04:05 ET (08:05 GMT), the Dollar Index, which measures the dollar against a basket of six other currencies, rose 0.3% to 99.210, remaining just above the near six-week lows it reached last week.
The dollar strengthened due to optimism surrounding ongoing trade talks in London between China and the U.S., which aimed to resolve a growing dispute over tariffs and restrictions on rare earth minerals.
U.S. President Donald Trump indicated that the discussions were progressing well and that he was receiving only positive updates from his team, increasing confidence that this might lead to a de-escalation of the trade conflict between the two largest economies.
This development comes at a critical time, as both economies are feeling the pressures of Trump’s numerous tariff orders since January.
Analysts at ING noted that while there wasn’t a major factor likely to move the Dollar Index outside a tight range of 98.80 to 99.40 today, any positive news from the U.S.-China trade talks would likely benefit the dollar.
In Europe, GBP/USD dropped 0.6% to 1.3472 after recent U.K. labor market data indicated a rise in unemployment, suggesting a cooling jobs market and potentially supporting further interest rate cuts by the Bank of England.
The Office for National Statistics reported that the unemployment rate rose to 4.6% for the three months ending in April, matching forecasts and slightly up from 4.5% in the previous period.
Official data also showed that British wages increased by 5.2% in that same period, a slower rate than expected and the weakest growth since the third quarter of 2024.
This lackluster wage growth may affect the timing and pace of future interest rate cuts by the Bank of England.
ING mentioned that the recent negative trends in these figures underline the necessity for continued rate cuts; otherwise, the Bank of England risks falling behind.
EUR/USD fell 0.3% to 1.1395, with the euro declining as the dollar appreciated and traders continued to assess the European Central Bank’s comments following last week’s interest rate cut.
Policymaker Robert Holzmann stated that the ECB's pause in rate cuts could last unless economic data worsens, in which case further cuts might be considered this year.
ING remarked that it’s difficult to see EUR/USD breaking out of a 1.1370-1.1430 range today, with the potential for directional breakouts being evenly balanced.
In Asia, USD/JPY increased 0.1% to 144.69, with the yen remaining stable despite comments from Bank of Japan Governor Kazuo Ueda, who indicated that the BOJ is prepared to raise interest rates once inflation consistently reaches its 2% target.
USD/CNY was also up 0.1% to 7.1883, with traders focused on the ongoing trade discussions in London, while remaining cautious and awaiting concrete results rather than mere negotiations.
As of 04:05 ET (08:05 GMT), the Dollar Index, which measures the dollar against a basket of six other currencies, rose 0.3% to 99.210, remaining just above the near six-week lows it reached last week.
The dollar strengthened due to optimism surrounding ongoing trade talks in London between China and the U.S., which aimed to resolve a growing dispute over tariffs and restrictions on rare earth minerals.
U.S. President Donald Trump indicated that the discussions were progressing well and that he was receiving only positive updates from his team, increasing confidence that this might lead to a de-escalation of the trade conflict between the two largest economies.
This development comes at a critical time, as both economies are feeling the pressures of Trump’s numerous tariff orders since January.
Analysts at ING noted that while there wasn’t a major factor likely to move the Dollar Index outside a tight range of 98.80 to 99.40 today, any positive news from the U.S.-China trade talks would likely benefit the dollar.
In Europe, GBP/USD dropped 0.6% to 1.3472 after recent U.K. labor market data indicated a rise in unemployment, suggesting a cooling jobs market and potentially supporting further interest rate cuts by the Bank of England.
The Office for National Statistics reported that the unemployment rate rose to 4.6% for the three months ending in April, matching forecasts and slightly up from 4.5% in the previous period.
Official data also showed that British wages increased by 5.2% in that same period, a slower rate than expected and the weakest growth since the third quarter of 2024.
This lackluster wage growth may affect the timing and pace of future interest rate cuts by the Bank of England.
ING mentioned that the recent negative trends in these figures underline the necessity for continued rate cuts; otherwise, the Bank of England risks falling behind.
EUR/USD fell 0.3% to 1.1395, with the euro declining as the dollar appreciated and traders continued to assess the European Central Bank’s comments following last week’s interest rate cut.
Policymaker Robert Holzmann stated that the ECB's pause in rate cuts could last unless economic data worsens, in which case further cuts might be considered this year.
ING remarked that it’s difficult to see EUR/USD breaking out of a 1.1370-1.1430 range today, with the potential for directional breakouts being evenly balanced.
In Asia, USD/JPY increased 0.1% to 144.69, with the yen remaining stable despite comments from Bank of Japan Governor Kazuo Ueda, who indicated that the BOJ is prepared to raise interest rates once inflation consistently reaches its 2% target.
USD/CNY was also up 0.1% to 7.1883, with traders focused on the ongoing trade discussions in London, while remaining cautious and awaiting concrete results rather than mere negotiations.