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• The US Dollar wavers above 0.8200, not far from multi-week lows.
• FX markets are moving sideways, with investors awaiting news from the US-China meeting.
• Trump’s positive comments feed hopes of a favourable outcome and keep the USD from falling further.

The US Dollar is practically flat against the Swiss Franc on Tuesday. The pair is hesitating above 0.8200, halfway through the last two weeks’ trading range, with investors looking from the sidelines, awaiting news from the US-China trade negotiations.

The world’s two major economies are expected to continue their talks for a second day, aiming to brush off the differences on thorny issues such as rare earths or chips trade, as their respective economies start to show the scars from a restrictive tariff policy.
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Comments from US President Donald Trump, highlighting the positive reports received from US representatives, are fueling hopes of a positive outcome and keeping safe havens like the CHF at bay. Market movements, however, remain limited, with investors awaiting more specific news from the negotiations.

The Swiss and US calendars are light today with the market’s focus on the US Consumer Price Index report, due on Wednesday. Market forecasts point to a moderate increase in yearly inflation, with the headline CPI up to 2.5% from 2.3% and the core inflation accelerating to 2.9% from the previous 2.8%.

These figures endorse the Fed’s wait-and-see stance and would have a positive impact on the USD, but any breakthrough from the US-China meeting will send macroeconomic figures to the background. 

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