"Markets could remain sensitive to the developments in the Middle East. Tensions remain elevated in the region amid continued incidents in the Strait of Hormuz and a failed attempt for a second round of talks this week, undermining prospects for a near-term resolution."
"While the indefinite ceasefire extension provided some relief and could help support sentiment, overall uncertainty could continue to drive demand for the dollar as a safe-haven asset."
"Recent US economic data also highlighted economic resilience, which could lower expectations of a softer monetary policy. In this regard, interest rates are expected to remain on hold for an extended period, which could strengthen yields and the dollar."
The dollar held steady amid geopolitical uncertainty, particularly in the Middle East. Elevated tensions and a failed attempt at talks have undermined resolution prospects. An indefinite ceasefire extension provided some relief, but overall uncertainty may drive demand for the dollar. Elevated oil prices could fuel inflation concerns, supporting Treasury yields. Recent US economic data indicates resilience, potentially keeping interest rates on hold. Attention is on jobless claims and PMI data, with signs of resilience likely supporting the dollar, while slowing activity could introduce downside pressure.
Read at London Business News | Londonlovesbusiness.com
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