USD Holds Steady Near 100.00 Amid Geopolitical Tensions and NFP Anticipation

The United States Dollar Index (DXY) has held steady near the psychological mark of 100.00 as traders wait for the US Nonfarm Payrolls (NFP) report amid increasing geopolitical tensions in the Middle East.

Saudi Arabia warned of a potential attack by Iraqi militia factions and Yemen's Iran-backed Houthis, prompting concerns of a wider regional conflict that would boost the safe-haven dollar.

The latest developments led to an overnight rise in oil prices, fueling inflation fears and supporting higher US bond yields and elevated USD expectations.

Bullish traders are hesitant to place aggressive bets, however, and are looking for more cues from the NFP report on the Federal Reserve's policy path.