💵 Dollar Gains Amid Middle East Tensions

💹 The US dollar is experiencing modest gains against major currencies including the euro and yen as global markets remain unsettled by ongoing Middle East conflicts. Oil prices continue to stay elevated, with Brent crude hovering near $110, while US stock futures have declined, with S&P 500 futures down 0.5%. Additionally, 10-year Treasury yields have climbed to 4.30%, reflecting increased market uncertainty.

🌍 Despite President Trump’s assertions that the war will end soon, markets remain skeptical and increasingly anxious as energy disruptions in the Middle East persist. The prolonged conflict continues to create volatility across financial markets, with traders closely monitoring developments for any signs of resolution.

📈 Key Currency Movements:

💱 • USD/JPY: The pair has rebounded 0.7% to 158.80 levels after experiencing selling pressure yesterday. The currency pair is approaching its 200-hour moving average, which represents a critical technical level. A break above this level would allow buyers to regain near-term control, while yesterday’s breakdown led to a quick drop toward 157.60 before buyers stepped in.

💱 • EUR/USD: The pair has declined 0.4% to 1.1540 levels. Yesterday saw buyers push past the 200-hour moving average, a key resistance level that had limited upside movement since the US-Iran conflict began. This breakthrough led to a quick rally toward 1.1600 before sellers returned. The pair is now testing the 200-hour moving average at 1.1530, which will be crucial for determining near-term momentum.

📰 With the week’s central bank meetings concluded, market attention has shifted back to Middle East developments. Headline risk remains the primary concern for traders, with only a brief respite expected over the weekend before volatility potentially resumes on Monday. The ongoing geopolitical tensions continue to drive safe-haven flows and energy market disruptions.

Source : tradingview.com