#USChinaTradeTalks

The trade negotiations between the US and China are taking place today in London, with US Treasury Secretary Bessent, Commerce Secretary Lutnick, and US Trade Representative, Ambassador Greer, meeting with Chinese representatives led by Vice Premier He Lifeng. The negotiations aim to deepen discussions on the bilateral trade agreement.

*Key Developments:*

- *Trade Negotiations*: The meeting marks the first economic and trade consultation mechanism between the two nations, with both sides expecting to discuss trade tensions and potential agreements.

- *Market Impact*: A positive outcome could boost the US Dollar and US assets, which have been negatively affected during the trade war. The Indian Rupee has already shown gains ahead of the negotiations, with the USD/INR pair sliding to near 85.50.

- *Global Economic Implications*: The negotiations occur amid ongoing trade tensions, with the US imposing tariffs on China and China retaliating with tariffs on US products. A resolution could alleviate trade uncertainty and support global economic growth.¹

*Market Reactions:*

- *Currencies*: The US Dollar Index has corrected to near 99.00, while the Euro and Pound have shown slight gains against the Dollar.

- *Gold*: Gold prices are trading cautiously, awaiting the outcome of the trade negotiations for direction.

- *Cryptocurrencies*: The broader cryptocurrency market is rising, but gains are at risk amid trade uncertainty.²