
Market Sector Scanner: Middle East Tensions, Yen Intervention and the ECB
Weaker U.S. inflation reduced expectations of an early Fed rate hike last week, while rising U.S.–Iran tensions pushed oil prices higher, weakened the yen and supported USD/JPY. U.S. and Japanese stocks fell as concerns about expensive AI shares and stronger Chinese competition returned. This week, markets will focus on Middle East developments, possible action by Japan to limit further yen weakness and the ECB meeting. USD/JPY, GBP/JPY, EUR/USD and gold may offer range-trading opportunities, while the Nasdaq could remain under pressure.
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