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Dollar slides toward two-month lows as Middle East risk lifts oil and gold
The US Dollar Index is holding below 100.0 after weaker US data cut expectations for a Fed move next month, while gold pushed back above $4,400 and WTI rose toward $84 a barrel.
The US dollar weakened at the start of the week, with the US Dollar Index (DXY) slipping toward two-month lows and trading below 100.0. FXStreet linked the move to a streak of underwhelming US jobs, inflation, and retail sales data that has trimmed expectations for a Federal Reserve move next month.
Geopolitical concerns also supported commodities that tend to move alongside risk sentiment. A senior Iranian official said Tehran is shifting to a fully offensive stance, with warnings of escalation in the Strait of Hormuz if diplomacy fails, and the report helped lift crude by more than 2% while keeping gold on a firm bid.
EUR/USD held gains near 1.1580 after retreating from two-month highs near 1.1614, and GBP/USD remained near the mid-1.3500s close to three-month highs ahead of Tuesday's UK jobs report. USD/JPY stayed around the 159.00 area after markets looked past a soft Japanese second-quarter GDP print, while AUD/USD traded firm in the low-0.7100s despite weekend data showing Chinese industrial production and retail sales both slowing.
FXStreet also pointed to the week ahead for catalysts, including Australia Westpac consumer confidence in Asia, UK labor market data in Europe, and a US calendar with building permits, housing starts, and industrial production. In Europe, the central bank focus includes an ECB speech from Philip Lane and scheduled regional sentiment surveys.
Latest closeGold $4,432.00 ▲1.6%|WTI crude $82.40 ▲1.4%|EUR/USD 1.157 ▲0.4%