Dollar edges higher, but gains tempered amid U.S.-China uncertainty
By Gertrude Chavez-Dreyfuss
NEW YORK (Reuters) - The dollar rose on Thursday, with gains limited ahead of a two-day summit between U.S. President Donald Trump and his Chinese counterpart Xi Jinping that could have geopolitical ramifications, and Friday's U.S. jobs report.
"The long-awaited meeting ... could well be a combustible affair, with the future of trade relations between the superpowers at stake," said Dennis de Jong, managing director at online FX broker UFX.com in Limassol, Cyprus.
"The market will be hoping for stable, constructive talks, but knows all too well that Trump is capable of changing the agenda at any moment."
He added that Trump was under huge pressure to deliver on election promises to secure blue-collar jobs lost to China in recent years, "but playing hardball with a country that owns a significant share of U.S. debt comes with its own risks."
North Korea is also a hot-button issue for both the United States and China. The most pressing problem facing Trump and Xi is how to persuade nuclear-armed North Korea to halt unpredictable behavior like missile test launches that have heightened tensions in South Korea and Japan, analysts said.
North Korea is also working to develop an intercontinental ballistic missile capable of hitting the United States.
Federal Reserve minutes released on Wednesday initially pressured the dollar.
"They didn't really alter the view of a slow pace of U.S. interest rate rises this year," said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington. Continued...