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Global markets exhibited cautiously optimistic sentiment as former U.S. President Donald Trump hinted that the Israel-Hamas war could end soon, sparking a relief rally in equities and commodities. The Nasdaq rebounded amid easing oil prices, while the U.S. dollar weakened against the euro and Australian dollar. The European Central Bank emphasized patience in assessing whether recent energy price shocks are temporary, and Saudi Aramco CEO highlighted 180 million barrels of disruption in oil markets. Gold remained range-bound as traders awaited new catalysts, and the RBA acknowledged Middle East volatility as a 'genuine challenge.' The shift in risk appetite is critical for forex traders, particularly in EUR/USD and AUD/USD pairs, which saw renewed buying interest. Weaker dollar dynamics and geopolitical de-escalation expectations are supporting non-yen carry trades. For commodities, oil price volatility remains a key wildcard, with Saudi Arabia's production decisions and OPEC+ policy adjustments likely to influence near-term trends. Central banks' cautious stances suggest prolonged uncertainty in monetary policy paths. MENA investors should monitor Saudi Aramco's production updates and OPEC+ meetings for oil price guidance. The ECB's assessment of energy price sustainability will impact eurozone inflation trajectories. Traders should also watch U.S. small business data and potential Trump policy statements for equity and FX market direction. Key assets to track include EUR/USD, Oil, Gold, and AUD/USD.
