US Dollar Firms on Geopolitical Risks as FX Markets Weaken and Oil Caps USD Gains

Forex markets are turning defensive as geopolitical tensions in the Middle East continue to support the US Dollar, pressuring major currency pairs despite mixed macro signals. While the Dollar is broadly firm, elevated oil prices are limiting gains against commodity-linked currencies like the Canadian Dollar, and the Australian Dollar remains subdued even after a rate hike, highlighting uneven market reactions across assets. The Australian Dollar (AUD/USD) remains subdued despite the Reserve Bank of Australia delivering a rate hike, indicating limited bullish momentum. Price action reflects broader USD strength ...