Dollar near two-week high amid strong US data, Mideast tensions

The DXY Dollar Index rose on Thursday and remains on a winning streak near 98.70, supported by stronger-than-expected US data and persistent geopolitical uncertainty, as conflicting headlines keep markets cautious. Weekly Initial Jobless Claims rose to 214,000 from 212,000, still consistent with a resilient labour market. Meanwhile, preliminary S&P Global PMIs for April surprised to the upside, with Manufacturing at 54 points and Services at 51.3, reinforcing the view that the US economy remains on a solid footing. This combination lifted US yields and further underpinned the greenback. A notable geopolitical update crossed the wires, with a report from Israel’s N12 News indicating that Iranian Parliament speaker Mohammad Bagher Ghalibaf had resigned from the negotiations with the US. The news moved the markets, but different Iranian media denied it, adding to the ongoing noise around Middle East negotiations. EURUSD traded under pressure near the 1.1690 zone, weighed down by the stronger USD amid markets favouring solid US data. GBPUSD drifted lower toward 1.3480, struggling to regain traction amid broad dollar strength. In the UK, the S&P Global Composite PMI increased from 50.3 to 52, indicating growth in both the manufacturing and services sectors, which are now above the expansion/contraction threshold. USDJPY pushed higher toward 159.50, supported by rising US yields, though the upside remains cautious amid lingering intervention risks. AUDUSD softened toward 0.7140, pressured by the stronger USD and higher yields. The Reserve Bank of Australia’s (RBA) relatively firm stance offered some support, but global sentiment and US data remain on top. West Texas Intermediate (WTI) crude oil surged near $96.00 per barrel amid ongoing tensions in the Middle East, which continue to support prices. Gold (XAUUSD) retreated near the $4,710 mark, pressured by rising yields and a stronger US Dollar, despite lingering safe-haven demand. (Source: OANDA) The post Dollar near two-week high amid strong US data, Mideast tensions appeared first on Financial Mirror.