Investors turn cautious ahead of April US inflation data after President Trump signals potential ceasefire collapse with Iran.
The US Dollar Index climbs nearly 0.4% to 98.30 as risk sentiment sours on fears of a breakdown in US-Iran ceasefire talks. President Donald Trump called the truce “on life support” after Tehran’s latest proposal was rejected for omitting nuclear issues, raising concerns over renewed conflict.
Markets await April’s US Consumer Price Index, with annual inflation forecast to hit 3.7%, the highest since September 2023. The data could influence Federal Reserve policy expectations amid persistent price pressures.
Risk aversion drives US stock index futures lower by 0.1% to 0.6%, while crude oil prices rise nearly 3%, with West Texas Intermediate trading near $98. The EUR/USD pair remains under pressure in early European trading.