Dollar Soars Amid Rising Yields and Geopolitical Tensions
The US Dollar has surged to new multi-week highs, propelled by rising US Treasury yields and ongoing geopolitical tensions. The US Dollar Index (DXY) has approached the 101.60 zone for the first time since late July.
Investors are assessing the lack of progress in the Middle East conflict and the continued increase in US Treasury yields across the curve. This week's key economic data releases include the ADP Employment Change, PCE, Personal Income/Spending, Chicago PMI, final Q2 GDP Growth Rate, and EIA's weekly report on crude oil stockpiles.
The EUR/USD has declined to three-month lows, nearing the 1.1300 support level amid a firmer US Dollar bias and geopolitical jitters from the US-Iran conflict. In contrast, the GBP/USD has followed the sentiment surrounding its risk-linked peers, challenging the 1.3200 region.