Dollar Slides Amid Central Bank Meetings and China's Trade Talks with Trump

The dollar experienced a decline on Tuesday ahead of significant central bank meetings, with a U.S. rate cut anticipated by market analysts. Concurrently, President Donald Trump's Asia tour, especially discussions concerning a potential trade deal with China, kept investors on edge.

Although early signals suggested a decrease in trade tensions between the U.S. and China, leading to a risk rally on Monday, apprehension persists regarding the outcome of the upcoming meeting between Trump and Chinese President Xi Jinping in South Korea. Expectations for a comprehensive trade agreement remain low.

Currency markets have shown restraint this week, reflecting the uncertainty surrounding the trade talks. Additionally, central banks in the U.S., Japan, and Europe are also in focus, as their decisions will significantly impact global markets. Recent developments have traders assessing the possible impacts on economic sentiment and risk assets.