#USChinaTradeTalks US-China trade talks are currently underway in London, with investors eagerly awaiting potential breakthroughs that could impact global markets. The talks are focused on making the deal made in Geneva permanent and avoiding the return of high tariffs. Here's what's happening¹:

- *Market Reaction*: Global equities are mixed, with Asian markets showing gains despite weak Chinese data. US stock futures are slightly lower, while European markets are mostly down.

- *Dollar Impact*: The dollar index has fallen 0.3% to 98.929, with the US-China trade talks potentially supporting the dollar if a deal is reached.

- *Commodity Prices*: Oil prices have ticked lower due to weak Chinese data but remain supported by trade optimism. Brent crude is at $66.09, and WTI is at $64.22 per barrel. Gold futures are flat at $3,344.50 per troy ounce.

- *Currency Movements*:

- *EUR/USD*: Holding firm above 1.1400, supported by renewed US dollar weakness.

- *GBP/USD*: Gaining traction above 1.3550, helped by a weaker US dollar.

- *USD/JPY*: Declining toward 144.00.

- *Key Data*: US inflation data for May is due on Wednesday, which could influence market expectations.

- *Trade War Context*: The US-China trade war began in 2018, with tariffs imposed by both sides. The Phase One trade deal in January 2020 aimed to restore stability, but tensions have escalated again with the return of Donald Trump as US President.