Risk sentiment improves after both nations pause military actions, weighing on the USD and lifting US stock futures.
The US Dollar Index fell over 0.2% to near 101.20 as investors welcomed a pause in US-Iran military strikes. US President Donald Trump halted operations, while Iran reciprocated, easing geopolitical risks ahead of the Federal Reserve’s policy decision on Wednesday.
US stock index futures rose 0.8% to 1.4%, reflecting improved market sentiment. Crude oil prices dropped sharply, with WTI trading below $64, down more than 6% on the day, as supply concerns eased. Durable Goods Orders and the Dallas Fed Manufacturing Index are due later.
Analysts caution that de-escalation remains fragile, with Hormuz shipping traffic still subdued. The Fed’s two-day meeting this week will be closely watched for signals on interest rates.