Traders remain cautious as geopolitical tensions escalate in the Middle East before key inflation figures at 8:30 AM ET.
The USD shows minimal movement against the EUR, JPY, and GBP as North American markets open, with traders focused on upcoming US CPI data. The currency pairs remain range-bound, awaiting the 8:30 AM ET release for directional cues.
Geopolitical risks dominate sentiment after overnight clashes between the US and Iran, including reciprocal strikes near the Strait of Hormuz and missile exchanges in Jordan and Bahrain. Israel-Hezbollah tensions also escalated, with strikes reported in Beirut and Baalbek.
Oil markets reflect cautious optimism, with WTI crude up $1.78 to $89.90 after dipping to $87.39 earlier. The high for the session reached $90.42, signaling contained risk premiums despite escalating conflicts.