Stocks edge higher, dollar steady ahead of US-China meeting, Iran talks stall

Global stocks edged higher and the dollar was little changed on Monday as investors looked ahead to a meeting between US President Donald Trump and Chinese President Xi Jinping, while oil prices rose after US-Iran negotiations appeared to stall.

Trump rejected Iran's response to a US proposal for peace talks, calling Tehran's demands "totally unacceptable." Iranian media reported that the plan called for an end to the war on all fronts, lifting of sanctions, reparations, and recognition of Iran's control of the Strait of Hormuz, a vital energy conduit. The stalemate pushed oil prices higher, adding to uncertainty in currency markets. For forex traders, the dollar's steadiness reflects a cautious tone as markets weigh the potential outcomes of the US-China meeting against the geopolitical risk premium from the Middle East. NowPrice's real-time fx quotes show the dollar index holding near recent levels, with traders watching for any break from the range.

Looking ahead, the focus remains on the Trump-Xi meeting for any signs of progress on trade or broader tensions. A positive outcome could boost risk appetite and weigh on the dollar, while a breakdown may fuel safe-haven flows. On the Iran front, any further escalation could lift oil prices further, potentially impacting currencies of oil-importing nations. Traders will also monitor upcoming US economic data for clues on the Federal Reserve's policy path.