"The geopolitical backdrop in the Middle East remained tense after renewed threats to Iranian infrastructure from President Donald Trump, although reports of a potential deal could limit the demand for the dollar."
"Recent economic data have boosted the dollar as well. The latest labour market report showed job creation significantly exceeding expectations, signalling resilience despite prior concerns."
"A continuation of strong activity data would likely sustain upward pressure on yields and reinforce dollar strength in the near term."
The dollar index showed volatility amid geopolitical tensions in the Middle East, particularly regarding Iran. Elevated oil prices and disruptions in the Strait of Hormuz raised inflation concerns, potentially increasing Treasury yields. Recent economic data, including a strong labor market report, supported the dollar's strength. Expectations of unchanged interest rates through year-end were reinforced by the combination of job market resilience and rising energy costs. Upcoming economic releases, such as the ISM Services index and GDP data, will be crucial in shaping future dollar strength.
Read at London Business News | Londonlovesbusiness.com
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