US Dollar, Oil, Gold Jump as Investors Flock to Safe Haven Assets: Where to Next?
Global markets are kicking off the week with heightened volatility, fueled by escalating tensions between Israel and Palestine, which have now reached a level of official war.
Should tensions in the Middle East continue to escalate, it's likely that markets will factor in geopolitical risk throughout the week. This could temporarily overshadow the week's significant economic developments.
These geopolitical challenges add to an already eventful week for global markets. Notably, the US CPI data release has gained even more importance following last week's surprising employment figures.
Additionally, this week will see the release of the latest FOMC meeting minutes. However, the impact may be limited if they contain no new information beyond the previously stated rhetoric.
In contrast, the interplay of inflation data and geopolitical tensions is expected to exert significant influence on the Federal Reserve's forthcoming interest rate decision.Looking at the latest outlook of the dollar index, it was seen that DXY moved indecisively on the last day of last week.
The US dollar index initiated the new week with an upswing, and from a technical standpoint, it's evident that the 106.6 resistance level is once again in focus. A breakthrough beyond this point, especially if bolstered by positive economic data, could potentially set the stage for the next peak in the 108 range.
On the downside, the 106.4 level stands as the nearest support, with the 105.8 level serving as a more substantial support before reaching the critical 105 support level.
Conversely, there is a possibility of a waning bullish momentum for the DXY, which has recently centered around an average of 106.5, contingent upon a resurgence in demand for gold in
