Oil Prices Dip as Hormuz Tensions, Iran Talks, and Russia Sanctions Shape Market Outlook 
Yen Strengthens as Japan Election Boosts Confidence, Dollar Wavers Ahead of U.S. Jobs Data 
Gold and Silver Prices Rise as Falling U.S. Yields Signal Softer Economy Ahead of Key Jobs Data 
Asian Stock Markets Rise as Australian Shares Rally; Investors Eye U.S. Jobs Data and China Inflation 
Singapore GDP Surges in Q4 2025 as Government Raises 2026 Growth Outlook 
Australian Central Bank Signals Tough Stance as Inflation Pressures Persist 
Wall Street Mixed as Retail Sales Stall and Investors Await Key Jobs Report 
Dollar Slips Ahead of Key U.S. Data as Yen Holds Post-Election Gains 
Gold Prices Slip in Asian Trade as Markets Await Key U.S. Economic Data 
Australian Pension Funds Boost Currency Hedging as Aussie Dollar Strengthens 
Russia Condemns U.S. Sanctions as Cuba Faces Critical Fuel Crisis 
Japan Weighs Using Foreign Exchange Reserve Surplus to Fund Food Tax Cuts 
Asian Currencies Rise as Dollar Weakens Ahead of U.S. Payrolls Data; Aussie Hits Three-Year High 
British Retail Sales See Strong Start to 2026 as Food and In-Store Spending Rise 
The U.S. dollar edged higher on Monday as geopolitical tensions between Israel and Iran drove safe-haven demand, with investors bracing for key central bank decisions this week. Fears of a broader regional conflict intensified after Israel’s surprise attack on Friday led to the suspension of U.S.-Iran nuclear talks. Analysts warn that Iran may attempt to block the Strait of Hormuz, a vital oil trade route, posing broader economic risks.
The dollar rose 0.14% to 144.3 yen, while the euro slipped 0.14% to $1.1534. The greenback was steady against the Swiss franc at 0.81, and the dollar index held firm at 98.25. Risk-sensitive currencies like the Australian and New Zealand dollars saw marginal gains. Despite recent gains, analysts remain cautious on the dollar’s longer-term trajectory, especially if the Federal Reserve signals a dovish stance.
Brown Brothers Harriman’s Win Thin noted that the dollar’s safe-haven status may be tested, particularly amid weakening U.S. fundamentals. Markets expect the Fed to keep rates unchanged on Wednesday, with investors closely watching for comments on slowing economic growth and persistent inflation risks. Chris Weston of Pepperstone said the Fed's growth forecast will likely shift downward, keeping its policy tone neutral.
The Bank of Japan is also expected to maintain rates on Tuesday, though it may begin scaling back bond purchases next fiscal year. Central banks in the UK, Sweden, and Norway are also set to announce policy updates this week.
In commodities, gold climbed 0.22% to $3,435.5 an ounce, nearing April’s record high. Longer-dated U.S. Treasuries dipped slightly after Friday’s gains, reflecting market caution over potential inflationary effects from ongoing geopolitical turmoil.
