USD pairs await direction from London US-China trade negotiations

Major USD pairs remain range-bound in early Monday trading as markets focus entirely on US-China trade talks scheduled in London, with no economic data on today's calendar. President Trump's Friday comments expressing optimism about the meeting have raised expectations for potential tariff reductions or other goodwill gestures to advance negotiations. This has created a risk-on bias in early Asian and European sessions, though traders remain cautious given the high-stakes nature of the discussions. The dollar index hovers near 104.50, with any positive trade developments likely to trigger USD weakness as safe-haven demand diminishes. Conversely, disappointing outcomes could spark risk-off flows benefiting the greenback. Key USD pairs like EUR/USD, GBP/USD, and USD/JPY are trading in tight ranges, with volatility expected to spike on any trade-related headlines throughout the London session.