USD Strengthens on Geopolitical Tensions and European Political Risk

The US Dollar Index has gained 0.5% in early trading as escalating geopolitical tensions and European political uncertainty drive safe-haven flows into the greenback. EUR/USD declined 0.4% to 1.0420, pressured by concerns over political instability in key European nations ahead of upcoming elections. GBP/USD fell 0.3% to 1.2650 despite earlier bullish momentum, as risk-off sentiment outweighed positive UK economic data. Gold prices retreated 0.8% to $2,045 per ounce as the stronger dollar dampened demand for the precious metal. Technical indicators show the Dollar Index breaking above the 104.50 resistance level, with next targets at 105.20. Traders are monitoring developments in European politics and any escalation in global tensions, which could further support dollar strength. The shift to risk-off positioning suggests continued pressure on risk-sensitive currencies in the near term.