Geopolitical uncertainty and upcoming US economic reports underpin the USD, offsetting earlier risk-on sentiment.
The US Dollar (USD) stabilized near recent highs on Tuesday, supported by fading optimism over a diplomatic resolution to Middle East tensions. Markets had turned risk-positive earlier in the week after US President Donald Trump canceled planned strikes on Iran, but Iran denied ongoing negotiations, keeping uncertainty elevated.
Later in the session, US economic data releases—including June’s Goods Trade Balance, JOLTS Job Openings, and Factory Orders—will provide further direction. The USD has been the strongest major currency this week, particularly against the New Zealand Dollar, as traders await fresh catalysts.
Crude oil prices rebounded slightly after Monday’s 7% drop, with West Texas Intermediate (WTI) trading near $79.50, up about 1% on the day. Analysts noted the latest price movements reflect ongoing supply concerns amid geopolitical risks.