Forex Today: US Dollar firms on safe-haven demand ahead of data-heavy Tuesday

The US Dollar (USD) index returned to the 99.00 mark for the first time since a previous decline, driven by heightened demand for safe-haven assets following the U.S. Treasury Secretary Scott Bessent's announcement of intensified Iran sanctions. This risk-averse posture boosted gold prices and pressured growth-oriented currencies, while leaving crude oil less affected.

Looking ahead, traders will focus on a busy Tuesday, featuring Germany's IFO business surveys and a slew of U.S. economic releases. The USD/Canadian Dollar pair led the gains, while EUR/USD slipped below the 1.1700 level, and GBP/USD struggled around 1.3630, with no UK data to support the British Pound. USD/JPY remained steady above 159.00, as the Japanese Yen weakened against a stronger U.S. Dollar.

Meanwhile, AUD/USD lagged, falling towards 0.7150 amid risk aversion and a firmer Dollar. Gold surged to just under $4,650 per troy ounce, propelled by the Iran headlines and heightened demand for safe-haven assets. West Texas Intermediate (WTI) Oil retreated towards the $85.00 range despite the tension escalation. The U.S. is set to release key economic data, including the ADP four-week average employment figure, house-price data, the Conference Board's Consumer Confidence, New Home Sales, and the Richmond Fed Manufacturing Index, alongside a 2-Year Note auction and the API weekly crude stock report.

Later in the week, Australia's monthly CPI is anticipated to soften to 3.2% from 3.8%, followed by trimmed-mean measure and second-quarter construction data, shaping the Australian Dollar's trajectory into the following week.