Dollar Steadies as Iran Tension Simmers; US Jobs Data Next

The US dollar edged higher on Monday as rising geopolitical tension with Iran prompted investors to seek safer assets. The modest gain comes as traders look ahead to key US economic data due later this week. Concerns over a potential conflict in the Middle East have increased demand for the dollar, which is often seen as a safe haven during times of uncertainty. This support helped the currency recover some of its recent losses. However, the market's focus is now shifting to the release of US employment figures, scheduled for later in the week. These numbers will provide fresh clues about the health of the American economy and could influence the Federal Reserve's next move on interest rates. Analysts note that the dollar’s direction will largely depend on whether the data points to a strong or slowing job market. A robust report could strengthen the case for keeping rates higher for longer, which would likely support the currency further. Conversely, weaker numbers might renew expectations of a rate cut, putting pressure on the dollar.