 Dollar continues to dominate currency markets as geopolitical anxiety keeps providing support. Safe haven demand, sparked by fears of escalating conflict between the US and Iran, has put economic data on the back burner. While Iran has reiterated threats of retaliation after the US bombing of its underground nuclear sites, it has yet to act in a meaningful way. That delay may be giving markets some breathing room, but tensions remain high—especially with reports that some vessels have already paused transit through the Strait of Hormuz. Despite the elevated geopolitical backdrop, broader market reaction has been relatively restrained. European equity indexes are modestly in the red, and US futures are pointing to a flat open. Oil prices, which spiked sharply at the start of the week, have retraced most of those gains, while Gold continues to struggle for momentum despite the rise in geopolitical risk. Investors appear to be awaiting Iran’s next move before taking more directional bets. In the currency markets, Dollar and Swiss Franc lead gains, joined by Euro. Commodity currencies are bearing the brunt of the risk-off tone, with Kiwi and Aussie sitting at the bottom of the daily performance chart. Yen has been softer despite the cautious mood, while Sterling and the Loonie are trading in the middle of the pack...... |
