Investors flee riskier assets amid Middle East tensions, lifting the USD and pressuring the GBP ahead of FOMC minutes.
The British Pound fell 0.13% to 1.3340 against the US Dollar in European trading, driven by heightened geopolitical risks. Renewed concerns over Middle East stability, including threats to the Strait of Hormuz, triggered a flight to safety, boosting demand for the USD.
S&P 500 futures declined nearly 1% to 7,430, reflecting a risk-off mood. The US Dollar Index (DXY) edged up to 101.15 after recovering early losses. Comments from US leadership suggesting an end to diplomatic engagements with Iran added to market unease.
Traders are now focused on the upcoming FOMC minutes for insights into the Federal Reserve’s policy stance after abandoning forward guidance.