A significantly weaker US jobs report halted the dollar's recent rally and prompted markets to adjust interest rate expectations.

The dollar stayed firm, keeping pressure on major currencies as attention shifts to this week's US jobs report and Fed expectations.

The US dollar strengthened to its highest level since May 2025 as the Fed maintained a hawkish tone, signaling that additional rate hikes remain possible despite leaving rates unchanged.

Reports of a US-Iran interim agreement to halt conflict and reopen the Strait of Hormuz improved global risk sentiment.

Strong US labor market data set the tone across asset classes, reinforcing expectations that the Federal Reserve could deliver another rate hike later this year.

Markets entered June with a calmer tone as reports of progress in US-Iran talks helped ease pressure on energy prices. A possible 60-day ceasefire extension supported hopes that tensions around the Strait of Hormuz could cool further, although final approval from President Trump remains pending.

Financial markets started the week with a more constructive tone as optimism surrounding a potential US-Iran agreement fueled expectations of a reopening of the Strait of Hormuz.

Rising energy prices and persistent inflation pressures continued to reshape market expectations as Middle East tensions pushed oil higher and strengthened the case for tighter central bank policy.