The forex market this week saw strong support for the US dollar, driven by increasing geopolitical tensions in the Middle East, which reinforced its status as a safe‑haven asset. The British pound fell to near its lowest level since May, around USD 1.3380.
Key moves:
The US dollar maintained its strength against major currencies.
The pound sterling and the euro declined under pressure from the strong dollar.
The Japanese yen remained stable with minor movements.
Technical outlook:
The dollar’s upward trend continues, supported by political and economic momentum.
Relative Strength Index (RSI) indicators show buy signals on several pairs.
Market analyses pointed to clear trading opportunities on the EUR/USD and GBP/USD pairs.
Gold traded steadily near USD 3,400 per ounce, supported by safe‑haven demand amid escalating regional tensions. However, it faced pressure from the strong dollar and Federal Reserve hints of no near‑term rate cuts.
Main drivers:
Gold rose on market fears of a potential escalation.
Slight pullback due to the stronger dollar and interest‑rate expectations.
Technical analysis:
Gold needs a clear break above USD 3,400 to confirm an upward trend.
Investors remain cautious, closely monitoring political developments.
Oil prices surged early in the week after US and Israeli strikes on Iranian sites, raising concerns over a possible impact on the Strait of Hormuz—a vital route for oil exports. Brent crude reached about USD 78.50, before easing slightly as expectations grew that the confrontation would not escalate into open conflict.
Key drivers:
Sharp rise fueled by geopolitical tensions.
Statements and concerns about potential disruption to Gulf supplies.
Outlook:
Some estimates suggest Brent could surpass USD 100 if strait traffic is affected.
OPEC+ actions and increased production helped calm the market somewhat.
The market remains sensitive to any sudden developments in the region.
