The US Dollar Index (DXY) fell on Monday, as markets digest headlines of failed Iran-United States (US) peace talks over the weekend and reports that US President Donald Trump moved the US Navy to close the Strait of Hormuz, a development that would typically fuel a strong safe-haven bid for the Gre
The Dow Jones Industrial Average (DJIA) edged lower on Monday, slipping around 50 points to trade near 47,900 after recovering from a much steeper drop at the open. The S&P 500 rose 0.2% to trade above 6,800, while the Nasdaq Composite gained 0.6% to push above 23,000.
Scotiabank strategists Shaun Osborne and Eric Theoret note the US Dollar (USD) is firmer after President Trump announced a blockade of Iranian ports, with US Dollar Index (DXY) off its Asian highs and still seen within a broader bearish setup.
Rabobank’s Senior FX Strategist Jane Foley observes that speculators have been rebuilding long Dollar positions as the US currency acts as the preferred safe haven during the Middle East conflict.
TD Securities strategists Oscar Munoz and Eli Nir argue that US macro dynamics and Federal Reserve (Fed) policy expectations will be driven by developments in Iran, recent inflation data and incoming activity indicators.
Commerzbank’s Head of FX and Commodity Research Thu Lan Nguyen argues that, despite Iran’s Renminbi toll plans and geopolitical tensions, the US Dollar (USD) remains structurally dominant in trade and reserves.
Brown Brothers Harriman’s (BBH) Elias Haddad notes that the US naval blockade of the Strait of Hormuz has pushed Brent Oil back above $100 and lifted the US Dollar (USD) as risk aversion returns.
The US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades 0.25% higher to near 99.00 during the European trading session on Monday.
Deutsche Bank’s strategists highlight that S&P 500 futures are lower as the Iran conflict escalates and energy prices jump, pressuring global risk sentiment.
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is remaining in the positive territory after paring daily gains and trading around 99.00 during the Asian hours on Monday.
The US Dollar Index (DXY) fell toward the 98.60 price region as markets digest the latest US Consumer Price Index (CPI) report, which confirmed that inflation remains stubbornly elevated, largely driven by energy prices amid war in the Middle East.
The Dow Jones Industrial Average slumped around 300 points on Friday, or roughly 0.6%, retreating from the 48,000 handle after two sessions of ceasefire-fueled gains.
Brown Brothers Harriman’s (BBH) Elias Haddad notes that global markets are cautious ahead of US-Iran ceasefire talks, with Brent, equities and bonds reacting while the Dollar stabilizes.
TD Securities’ Global Strategy Team highlights that United States (US) Consumer Price Index (CPI) is the key event, with core inflation expected to rise 0.27% m/m and headline CPI to jump 0.90% m/m as higher Oil prices feed through.