USDInd shows strongest gains in a week amid geopolitical escalation

• Increased demand for safe-haven assets noted
   
• Iran's response to Israel heightens regional tensions
   
• Investors await key labor market data releases
   
• US Job openings data shows robust labor market signs

Global tensions and economic indicators influenced the US dollar index, which hovered around 101.3 on Wednesday.

The index had risen for two consecutive days, driven by increased demand for safe-haven assets due to escalating Middle Eastern conflict.

The situation intensified after Iran retaliated against Israel.
 

Markets are now on high alert, awaiting Israel's potential response, and assessing the risk of a potentially broader regional conflict.

Investors also kept a close eye on the US vice presidential debate between Tim Walz and JD Vance, seeking insight into potential policy and economic implications.

Meanwhile, recent job openings data suggested a robust labor market, although the manufacturing sector remained stagnant.

• US JOLTs job openings: 8.04M – reported; 7.655M – forecasted
   
• US ISM Manufacturing PMI: 47.2 – reported; 47.5 – forecasted
   

Looking ahead, investors are anticipating key labor market data releases, including the employment data on Friday, which is expected to provide further insight into the state of the US economy.

• NFP reading: 140K – consensus
   
• US Unemployment reading: 4.2% – consensus