Mixed market sentiment weighs on the USD while gold and oil edge higher amid geopolitical tensions and central bank signals.
The dollar declined in European trading as mixed market sentiment prevailed, with gold rebounding 0.3% to $4,362 and WTI crude oil rising 0.5% to $81.64. Bitcoin fell 0.8% to $62,829, breaking below the key $64,000 support level amid broader risk-off moves.
US 10-year yields edged up 0.3 bps to 4.645%, while S&P 500 and Nasdaq futures posted modest gains of 0.1% and 0.2%, respectively. The Bank of Japan is reportedly eyeing a September rate hike, signaling a faster tightening pace, while German wholesale prices rebounded in July as energy tax cuts lapsed.
Geopolitical tensions persisted, with Iran’s threats to UAE oil vessels keeping the Strait of Hormuz effectively closed. The NZD led currency gains, while the USD lagged, reflecting cautious optimism in equity markets despite lingering uncertainties.