The U.S. dollar index (DXY00) rose by +0.27% on Friday, reaching a one-week high, driven by increased safe-haven demand amid the escalating Iran-Israel conflict, which is now in its 27th day. The Pentagon is reportedly considering deploying an additional 10,000 troops to the Middle East, adding to the existing 5,000 troops already sent.
Key economic indicators revealed that the University of Michigan’s March consumer sentiment index was revised down to 53.3 from 55.5, falling short of the expected 54.0. Inflation expectations for one year increased to 3.8%, above the forecast of 3.6%. In the forex market, the euro (EUR/USD) saw a decline of -0.12% due to stronger dollar performance and mixed ECB monetary policy signals, while the yen (USD/JPY) fell to a 20-month low.
In commodities, April COMEX gold prices rose by +2.66%, driven by increased safe-haven demand linked to geopolitical tensions. Meanwhile, crude oil prices surged by +5%, affecting inflation expectations and market reactions to Federal Reserve policies.
