Heightened Geopolitical Risk in Middle East

Geopolitical tensions are escalating following reports that the United States and Israel are planning military action against Iran. According to sources, the plans could involve targeting Iran's energy infrastructure, with some reports suggesting strikes could be approved to begin this weekend.

US Economic Data and Dollar in Focus

Market attention is turning to upcoming US labor market data, which will be a key factor for the US Dollar's direction following a period of broad weakness. The focus on economic indicators comes after the Federal Reserve's latest meeting revealed a hawkish split among policymakers regarding future monetary policy.

Potential Changes to Fed Policy Framework Debated

Discussions have reportedly taken place regarding potential changes to the Federal Reserve's operational framework, specifically the frequency of its rate-setting meetings. This idea, raised by a potential Fed board member, introduces a new variable for markets to consider in the context of future monetary policy decisions.