Middle East Tension

USD/ZAR has moved modestly higher after Friday’s sharp dollar-led decline, with traders watching whether the pair can hold its lower trading zone. Thin South African holiday volume, Middle East uncertainty and Wednesday’s US inflation data are keeping market participants cautious.

USD/MXN is holding inside a choppy technical range as traders weigh mixed forex sentiment, U.S. inflation concerns and geopolitical risk. Short-term price action remains vulnerable to sudden spikes as North American flows return to the market.