
The dollar index was little changed at around 101.3 on Monday after reaching a more than one-year high last week, as investors awaited the latest US monthly jobs report for fresh clues on labor market strength and the outlook for Federal Reserve policy. Fed Chair Kevin Warsh reiterated the central bank’s commitment to bringing inflation under control, reinforcing the hawkish tone of his debut earlier this month that prompted markets to scale back expectations for US rate cuts this year. Markets are now pricing in three Fed rate hikes this year, with the probability of the first increase in September standing above 60%. Meanwhile, investors continued to monitor developments in the Middle East after oil prices climbed following renewed clashes between the US and Iran around the Strait of Hormuz, although both sides agreed to halt further attacks ahead of peace talks set to resume this week in Doha, Qatar.

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