USD weakens as Middle East tensions persist, China stays silent

US equity futures have edged lower in early trading, with S&P 500 futures down 0.2%, weighing on risk sentiment and the US dollar. The dollar index (DXY) has retreated 0.15% to 105.20 as geopolitical tensions in the Middle East continue to elevate safe-haven demand, benefiting JPY and CHF. USD/JPY has declined 0.3% to 155.80, while USD/CHF dropped 0.25% to 0.9120. Market participants are particularly concerned about China's unusual silence on economic policy matters this afternoon, adding to uncertainty in Asian markets. The combination of Middle East tensions and China's lack of communication has increased volatility across major forex pairs. Technical indicators show USD/JPY approaching key support at 155.50, with further downside possible if risk-off sentiment intensifies. Traders should monitor weekend developments in the Middle East and any potential policy announcements from China that could impact Monday's opening.