Market caution prevails as the Iran-Israel conflict intensifies into its fourth day, with missile exchanges escalating tensions in the Middle East.
On Sunday, Israel announced the killing of Iran’s armed forces intelligence chief, while Iran reported over 200 casualties from Israeli strikes. Iranian missiles also targeted Israel’s largest oil refinery in Haifa Bay, raising concerns about the conflict’s regional impact.
US President Donald Trump urged both nations to seek peace, stating that talks and calls are underway to resolve the crisis. Meanwhile, the US Dollar Index edged slightly lower near 98.00 during the European morning session, and US stock futures remained positive ahead of key Federal Reserve announcements later this week.
Gold prices began the week strongly, reaching a near two-month high above $3,450 before retreating to just below $3,420. Crude oil, which surged over 10% last week, corrected slightly to trade above $71 per barrel on Monday.
Currency pairs showed mixed movements: EUR/USD rose toward 1.1600 following a better-than-expected 6.4% rise in China’s May retail sales and 5.8% industrial production growth.
AUD/USD held above 0.6500, GBP/USD remained near 1.3600 despite Friday’s losses, and USD/JPY fluctuated above 144.00 ahead of the Bank of Japan’s policy decision on Tuesday.
The Federal Reserve Bank of New York is set to release the June Empire State Manufacturing Survey later Monday, while the US Treasury will conduct a 20-year note auction during the American session. Investors are closely watching Wednesday’s Fed interest rate decision and updated economic projections for further market direction.
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