The dollar remains firmly in the driving seat across FX, with rising global yields, sticky inflation concerns and resilient economic activity keeping pressure on the major currencies. EUR/USD has slipped to a 13-month low, sterling is trying to recover from a three-month trough, and investors remain cautious about fading the latest USD move while US rates continue to reprice higher. The key question for markets is now whether incoming data can justify another leg of dollar strength, or finally give stretched currency pairs room to recover.

FX markets are starting the week caught between two competing forces. Geopolitical headlines remain capable of driving sharp moves in oil and risk appetite, but currencies themselves are increasingly taking their direction from interest-rate expectations, economic data and relative central bank policy.

FX markets open the week with the dollar still holding the upper hand, the euro under pressure and sterling caught between resilient rate support and growing fiscal scrutiny. Higher bond yields, elevated energy prices and shifting central bank expectations are driving the major crosses, while investors continue to favour currencies offering the strongest combination of growth and yield.

The Trump-Xi meeting in Washington has added another major geopolitical layer to an already volatile week for FX markets. President Donald Trump hosted Chinese President Xi Jinping at the White House on Thursday, with trade, artificial intelligence and Taiwan among the key issues under discussion during Xi’s first White House visit in more than a decade. Expectations for a major breakthrough remain measured, with deep-rooted economic and strategic differences still separating the two sides.

The dollar strengthened across the board on Wednesday as firmer US data pushed Treasury yields higher and weighed on risk appetite. Sterling, the euro and the Australian dollar all lost ground, while USD/JPY continued to rise as global bond markets came under pressure.

FX markets are turning their attention firmly towards tomorrow’s Trump-Xi summit in Washington, with the outcome capable of setting the tone well beyond USD/CNH. Trade, tariffs, AI and critical minerals are all on the table as Washington and Beijing look to preserve a fragile period of stability ahead of the current trade truce expiring in November. Any sign of progress could encourage a broader risk-on move across currencies, while renewed friction would quickly put trade-sensitive FX back under pressure.

FX markets have opened the week with a mixed but increasingly active tone, as investors weigh stronger US growth, higher energy prices, shifting rate expectations and a still-resilient risk backdrop. The dollar remains well supported as Treasury yields rise and Fed tightening expectations build, but the broader picture is far from one-way. Higher-beta APAC and CEE currencies are also finding demand, while the euro lacks a clear catalyst and sterling remains caught between global rate moves and uncertainty over the UK policy outlook. Oil and geopolitics are adding another layer of complexity

FX markets begin the week with the dollar holding onto much of last week’s advance, but the next move may be determined less by central banks and more by geopolitics. The Fed’s 25bp rate increase pushed US yields higher and lifted the dollar index towards one-month highs, while elevated energy prices and softer risk appetite weighed particularly heavily on higher-beta currencies such as sterling. Attention now shifts to US-China talks