Dollar Strengthens Amid Geopolitical Tensions and Hawkish Fed Outlook

The US dollar (USD) index remains above 101.00 in the European morning as investors remain risk-averse due to escalating geopolitical tensions and a hawkish Federal Reserve (Fed) outlook.

Gold (XAU/USD) slumped below $4,200 on Monday, losing about 2.5% on the day, while US stock index futures fell between 0.4% and 0.9% in the European morning.

The Reserve Bank of Australia (RBA) is set to announce monetary policy decisions on Tuesday, with economists at ING expecting a 25 basis point rate hike to 4.6%, citing an economy that continues to run hot across multiple fronts.