US Pre Market Open: EUR/USD gained 85 pips, GBP/USD gained 180 pips, charting gold, copper, and oil

The AUD/USD remains confined within a multi-week-old range, oscillating in a narrow band around 0.7100 during the Asian session on Tuesday. Bets for another interest rate hike by the RBA in May continue to act as a tailwind for the Aussie. However, a hit to sentiment from US-Israeli air strikes against Iran helps the safe-haven US Dollar preserve its overnight strong gains, reaching the highest level since January 20, and caps gains for the risk-sensitive Australian Dollar.

Following an early pullback to multi-week lows near 1.1670, EUR/USD now manages to reclaim the 1.1700 region as the NA session draws to a close on Monday. The steep retracement in spot follows the equally strong move higher in the US Dollar, as investors continue to assess the geopolitical landscape in the wake of the US and Israel attacks on Iran.

 

Gold now surrenders part of the earlier advance, reshifting its attenton to the $5,300 zone per troy ounce at the beginning of the week. Indeed, the yellow metal’s firm performance appears propped up by incresing geopolitical jitters in the Middle East, which at the same time fuels the demand for the safe-haven space.

Strategy continued its accumulation of the top crypto last week, acquiring 3,015 BTC for $204 million amid renewed interest in crypto products after four weeks of outflows.

AI is moving from earnings calls into the heart of monetary policy discussions, forcing Federal Reserve officials to confront a new question: How to act if AI reshapes inflation, employment and interest rates at the same time?

The United States, allied with Israel, struck Iran over the weekend, killing Iran’s Supreme Leader, Ayatollah Ali Khamenei. In retaliation, Iran launched missile and drone attacks targeting US military bases across several nations, with attacks from both parties still ongoing, fueling a geopolitical crisis.