The U.S. dollar traded mixed on Monday, with the euro holding post-election gains while haven currencies eased. Month-end rebalancing provided some support for the greenback, but falling Treasury yields limited upside. The Dallas Fed’s business activity index fell to its lowest since September, reinforcing concerns over U.S. growth. Investors now await Friday’s PCE inflation report for further Fed policy cues.

Geopolitical Focus on Ukraine and U.S.-Russia Talks

Trump, following a G7 call, stated that leaders aim to end the Russia-Ukraine war and hinted at potential U.S.-Russia economic transactions. Macron reiterated France’s commitment to lasting peace.

Euro, Pound Steady Amid Key Resistance Levels

EUR/USD gained 0.21% but remained below 1.05 as large options expiries between 1.04-1.06 limited movement. GBP/USD was little changed, with dovish BoE comments keeping gains in check. A close above 1.2767 is needed to shift focus toward 1.30.

Yen Weakens as Cross Flows Drive USD/JPY Gains

USD/JPY rose 0.14%, supported by short-covering in EUR/JPY. However, lower highs on charts suggest resistance near 150.93. Japan’s services PPI on Tuesday may offer further BoJ policy insights.

Treasury Yields and Equities Show Modest Moves

Yields dipped 1-2bps, with the 2s-10s curve ticking up to +22.6bps. The S&P 500 rose 0.23%, led by financials.

Commodities Mixed as Oil Rises, Copper Declines

WTI crude gained 0.60% on new U.S. sanctions against Iran, while gold rose 0.37%. Copper fell 0.94% amid tariff concerns and weak China demand.

Market Outlook: Subdued Moves Ahead of Key Data

The dollar index slipped 0.09% as risk sentiment improved. EUR/JPY climbed 0.38%, GBP/JPY rose 0.27%, and AUD/JPY gained 0.30%, reflecting modest yen weakness. Traders remain cautious ahead of upcoming macro events.