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Global markets witnessed a resurgence in safe-haven demand on March 12 as geopolitical tensions and economic uncertainties pushed investors toward the US dollar and oil. Oil prices climbed to $82.50 per barrel, driven by OPEC+ production cuts and concerns over Middle East stability. The USD index rose to 103.4, with the EUR/USD pair falling below 1.0750 as European Central Bank hawkishness waned. Central banks' dovish signals and the Fed's rate hike pause contributed to the dollar's strength. For traders, the dollar's rally creates cross-currency volatility, particularly affecting EUR/USD and GBP/USD pairs. Energy-linked assets like oil and natural gas are showing strong momentum, while gold remains under pressure from the dollar's gains. Portfolio managers are adjusting allocations toward USD-denominated assets amid mixed signals from central bank policies. MENA investors should monitor OPEC+ supply decisions and US inflation data in the coming weeks. The dollar's strength against emerging market currencies could impact Gulf trade balances, while oil price stability may support regional economies reliant on hydrocarbon exports. Technical indicators suggest key resistance levels at $84 for oil and 104.0 for the USD index.
