The Dow Jones Industrial Average (DJIA) edges lower on Monday, slipping around 50 points to trade near 47,900 after recovering from a much steeper drop at the open. The S&P 500 rose 0.2% to trade above 6,800, while the Nasdaq Composite gained 0.6% to push above 23,000.
Silver (XAG/USD) trades around $74.10 on Monday at the time of writing, down 2.23% on the day after briefly dropping to an intraday low near $72.61. The white metal is attempting to stabilize its losses but remains under pressure as the US Dollar (USD) strengthens amid rising geopolitical tensions.
Gold (XAU/USD) regains ground on Monday after a gap-down open, though upside remains limited as markets stay on edge amid escalating tensions between the United States and Iran. At the time of writing, XAU/USD is trading around $4,717, recovering from an intraday low near $4,632.
Deutsche Bank economists say Germany’s recovery is being pushed back by higher energy costs and uncertainty linked to the Middle East conflict. They cut their 2026 growth forecast to 1.0% while keeping 2027 at 1.5%. Inflation is projected to average 2.7% this year.
The Pound Sterling (GBP) remains firm on Monday as talks between Iran and the US disappointed investors, triggering a reaction from the White House, while recent news suggests that Tehran could be considering abandoning uranium enrichment, a key condition set by the US to end the war.
USD/CHF edges lower on Monday but lacks follow-through selling as escalating US-Iran tensions and growing expectations that the Federal Reserve (Fed) will keep interest rates higher for longer, driven by rising Oil prices, help limit downside in the US Dollar (USD).
The USD/JPY pair is trading with a neutral tone near 159.70 on Tuesday, up 0.27%, as markets react to a dramatic escalation in geopolitical tensions following headlines that the United States (US) has moved to effectively shut down traffic through the Strait of Hormuz.
West Texas Intermediate (WTI) US Oil trades around $95.70 per barrel on Monday at the time of writing, rising 5.90% on the day but still struggling to regain the $100 threshold after last week’s sharp volatility.
The British Pound (GBP) strengthens against the Japanese Yen (JPY) on Monday, with GBP/JPY extending its rally for a sixth consecutive day as rising Oil prices continue to weigh on the Yen. At the time of writing, the cross is trading around 214.87, its highest level since February 4.
Scotiabank strategists Shaun Osborne and Eric Theoret note the US Dollar (USD) is firmer after President Trump announced a blockade of Iranian ports, with US Dollar Index (DXY) off its Asian highs and still seen within a broader bearish setup.
OCBC strategists Sim Moh Siong and Christopher Wong highlight that recent New Zealand Dollar (NZD) gains on hawkish Reserve Bank of New Zealand (RBNZ) rhetoric look vulnerable. Markets now price nearly three hikes by year-end despite New Zealand’s negative output gap and below-trend growth.
Standard Chartered’s Bader Al Sarraf highlights that the Strait of Hormuz has been effectively shut since late February, driving a sharp drop in Gulf crude exports and taking a large volume of production offline.
