Global markets face volatility amid geopolitical shifts, commodity swings

Currency markets experienced heightened volatility as geopolitical tensions and commodity price fluctuations dominated trading. The dollar index rose 0.2% to 104.50, supported by risk-off sentiment amid ongoing global trade negotiations. EUR/USD traded 0.25% lower at 1.0835, while GBP/USD held steady near 1.2650. Commodity currencies showed mixed performance, with AUD/USD declining 0.3% to 0.6480 as iron ore prices weakened, while USD/CAD gained 0.2% to 1.3520 despite firm oil prices. Gold's 0.5% rise to $2,045 provided support for CHF pairs. Market participants are positioning for potential shifts in monetary policy as central banks navigate inflation concerns and growth risks. Technical indicators suggest consolidation across major pairs, with traders awaiting clearer directional catalysts from upcoming economic data releases.