Dollar Surges as Geopolitics and Yields Dominate Market Focus

The US Dollar has accelerated its recovery and hit new multi-week tops, driven by rising US Treasury yields and geopolitical concerns. The US Dollar Index (DXY) approached the 101.60 zone for the first time since late July.

Investors are focusing on key economic data releases this week, including the ADP Employment Change, PCE, Personal Income/Spending, Chicago PMI, final Q2 GDP Growth Rate, and EIA's weekly report on crude oil stockpiles. Fed officials Goolsbee and Barkin will also speak.

The EUR/USD has declined to three-month lows near the 1.1300 support level amid the firmer US Dollar bias and ongoing geopolitical jitters from the US-Iran conflict. Germany's Retail Sales, labour market report, and preliminary Inflation Rate are due tomorrow.

GBP/USD has followed the sentiment surrounding other risk-linked peers, challenging the 1.3200 region or fresh three-month lows. The UK will release Q2 Current Account results, Nationwide Housing Prices, quarterly Business Investment figures, and final Q2 Growth Rate.