The US dollar fell against most major rivals on Monday after the wave of optimism following the US payrolls report dissipated, replaced by caution ahead of the US-China London trade talks today.

The talks come at a sensitive time for both economies, with China facing recession pressures, while US consumption and trade suffer from trade uncertainty, forcing investors reconsider the dollars safe haven status.

Analysts expect the Asian currencies in particular such as the yen, the Australian and Canadian dollars to be the most impacted by the results of the new talks.

Yen Climbs on the Dollar

The dollar fell 0.55% today against the yen to 144.04 after two weeks of gains, after data showed Japans economy staved off recession in the first quarter of the year.

The euro rose 0.34% to $1.1433, as markets assess the European Central Banks announcement last week of the end of the currency cycle of policy easing, while Sterling rose 0.47% to $1.35814.

Chinese Exports Fall

In China, the yuan fell to 7.1844 against the dollar after showed Chinese exports fell to a three-month low in May, while producer prices hit a two-year nadir.

The New Zealand dollar rose 0.66% to 0.60585 against the greenback, while the Australian dollar added 0.5% to $0.6529.

Otherwise, Japanese negotiators are planning to conduct a new round of talks with the US in Washington soon, according to latest reports.

US Inflation

Later this week, crucial US inflation data will be released and will influence the course of the Federal Reserves policies this year.

Markets dont expect the first Fed 0.25% interest rate cut until October as officials remain suspicious of Trumps tariffs and their impact on the economy.