Dollar mixed as markets eye key rate decisions

The US dollar ended mixed against major currencies on Monday, with gains against the Canadian dollar, Japanese yen, and New Zealand dollar offset by losses against the euro, British pound, Swiss franc, and Australian dollar. The mixed performance came as improved sentiment in the Middle East reduced safe-haven demand for the greenback.

Reports that the United States and Iran have reached a framework peace agreement, expected to be signed on Friday, boosted risk appetite. The deal reportedly includes the reopening of the Strait of Hormuz, lifting of the US naval blockade, and commitments on Iran's nuclear program. For forex traders, the shift in risk sentiment is a key driver, as it typically weighs on the dollar and yen while supporting commodity currencies like the Australian and New Zealand dollars. Traders can track real-time dollar index and major pair quotes on NowPrice.

Looking ahead, markets are focused on upcoming central bank decisions, including the Federal Reserve, European Central Bank, and Bank of Japan meetings. Any hawkish or dovish surprises could trigger significant moves in rate differentials and carry trades. Key data releases this week include US retail sales and inflation figures, which will provide further clues on the pace of monetary policy normalization.