Markets in Wait Mode Ahead of US-China Talks

Asia-Pacific Market

Markets across Asia traded cautiously as investors braced for this weekend’s high-level trade discussions between the United States and China in Switzerland. This marks the first formal engagement in months, and although expectations are low, the meeting is viewed as a potential catalyst for easing tariff-related tensions. Chinese policymakers have maintained a reserved tone, further dampening hopes for immediate breakthroughs.

Europe

The euro held its ground after an earlier dip, with EUR/USD recovering to near 1.1230 during Friday’s session. The bounce was supported by a modest retreat in the U.S. dollar, though upbeat U.S. data earlier in the week and progress on trade fronts have kept greenback bulls in control. Focus in the eurozone remains subdued ahead of fresh macro drivers.

US Market

Investor attention shifts back to the Federal Reserve, with no major economic releases from the U.S. scheduled today. However, a packed slate of Fed speakers—nine in total—is likely to provide insight into how officials are interpreting recent data, trade policy shifts, and inflation risks. These remarks follow the Fed’s decision earlier this week to keep interest rates steady while maintaining a data-dependent stance.

Canada, on the other hand, will publish its April labor market report later in the session, which may offer cues on domestic rate expectations and cross-border demand trends.

Commodities

Gold prices rebounded after testing the $3,275 zone in Asia, climbing to session highs near $3,330 as safe-haven demand returned. Renewed geopolitical concerns—from Ukraine to the Middle East and South Asia—have reignited interest in defensive assets. A slight dip in the dollar has also helped the precious metal recover, although broader optimism around U.S.-UK trade ties and the resumption of U.S.-China tariff talks may cap further upside.