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27.10.202502:05:03UTC+00Dollar Eases as Trade Talks, Fed Meeting Eye

The dollar index experienced a slight decline, settling at approximately 98.8 on Monday, diminishing the gains achieved in the previous week. This shift comes as investors brace for a crucial week, highlighted by the eagerly awaited meeting between President Donald Trump and Chinese President Xi Jinping, alongside the Federal Reserve's significant interest rate decision. Optimism surrounds the possibility of a trade breakthrough at the Trump-Xi meeting on Thursday, following constructive discussions over the weekend between US and Chinese negotiators. These talks reportedly yielded consensus on key issues such as export controls, fentanyl, and shipping levies. Additionally, Trump is set to meet Japan's new Prime Minister, Sanae Takaichi, on Tuesday. Meanwhile, traders have almost fully factored in a quarter-point interest rate cut this week, in light of softer inflation data released on Friday, although the ongoing government shutdown remains a point of concern. The dollar depreciated most notably against the Australian and New Zealand currencies, reflecting the prevailing risk-on sentiment in the market.

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