DXY Bounces Back on Safe-Haven Demand Amid Middle East Tensions
The US Dollar Index (DXY) has rebounded after two days of losses and is currently trading around 99.80 in the European session on Thursday.
This gain is largely due to safe-haven demand following an Israeli airstrike in southern Lebanon, which killed one person and injured 11.
However, the US Dollar may face headwinds as markets digest news of a pending maritime agreement between Iran and Oman, aimed at increasing Middle Eastern energy flows through the Strait of Hormuz.
In economic news, ADP private-sector payrolls expanded by just 44,000 in July, below the 70,000-consensus forecast, while the ISM Services PMI pointed to steady momentum.
Investor attention now turns toward upcoming risk drivers, including Thursday's Initial Jobless Claims and Friday's key Nonfarm Payrolls (NFP) report.