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The U.S. Dollar is trading slightly weaker as it pulls back from recent highs, though it remains on track for what could be its strongest monthly performance since 2024, with gains of around 2.0 percent. The recent strength has been driven by global inflation pressures and expectations of continued hawkish central bank policies, but some currencies are now recovering as the month ends. Geopolitical tensions in the Middle East, including attacks impacting key infrastructure, have added uncertainty and contributed to higher energy prices, with U.S. gas reaching 4.0 dollars per gallon. Meanwhile, the Euro is attempting to rebound after recent weakness, supported by rising inflation in the Eurozone, while the Mexican Peso is stabilizing after last week’s interest rate cut by Banxico, remaining significantly stronger on a year-over-year basis. Markets are now focused on upcoming U.S. data releases, including consumer confidence, job openings, and Friday’s Nonfarm Payrolls report.