Forex Today: US Dollar consolidates gains at multi-month highs as focus remains on geopolitics
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The US Dollar (USD) consolidated its gains at multi-month highs around 106.00 after a rally fueled by expectations for a delay in the Federal Reserve's policy pivot and escalating geopolitical tensions. Iran launched an assault with dozens of drones in retaliation to a suspected Israeli attack on Iran's consulate in Damascus. UN Secretary-General Antonio Guterres condemned Iran's drone attacks as a "serious escalation." US index futures traded modestly higher after a sharp decline in Wall Street. The USD was the strongest against the Euro in the last 7 days. Middle East tensions escalated over the weekend after Iran attacked Israel. Ethereum opened higher and advanced above $2,370 before retreating. EUR/USD clings to recovery gains above 1.0650 ahead of US Retail Sales data. USD/JPY closed the previous week higher and continued to push higher, trading at its highest level in over three decades near 154.00. The terms 'risk-on' and 'risk-off' refer to the level of risk that investors are willing to stomach. In a 'risk-on' market, investors are optimistic and more willing to buy risky assets, while in a 'risk-off' market, investors play it safe and buy less risky assets. The Australian Dollar (AUD), Canadian Dollar (CAD), New Zealand Dollar (NZD), Ruble (RUB), and South African Rand (ZAR) tend to rise in 'risk-on' markets. The US Dollar (USD), Japanese Yen (JPY), and Swiss Franc (CHF) tend to rise in 'risk-off' markets. Gold price jumped on a flight to safety after Iran attacked Israel. Ripple price recovered from a weekend low and surged past $0.50. Data from the US, UK, and Canada will be in focus this week.
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