The U.S. dollar firmed on Tuesday as Washington and Beijing remained locked in trade talks that left investors on edge and hesitant in placing major bets while looking ahead to the U.S. inflation report later in the week.

Trump administration officials are expected to meet with Chinese representatives in London on Monday for trade talks. On the U.S. side, the group includes Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer.

Trade negotiations between the United States and China will continue on Tuesday in London, with both sides trying to preserve a fragile truce brokered last month.