Home›Forex›Major Pairs›US dollar strengthens on firmer oil and more hawkish F…

US dollar strengthens on firmer oil and more hawkish Fed expectations

OCBC strategists said a faster USD rally would likely need crude to push above $100 per barrel by end-2026.

Reported · Written up by our desk · Major Pairs

OCBC strategists Sim Moh Siong and Christopher Wong said the US dollar has strengthened broadly, citing higher oil prices, hawkish Federal Reserve rhetoric, and softer risk sentiment.

They project the USD could appreciate by around 2.0% to 3.0% by the end of 2026, with support expected versus lower-yielding currencies such as the euro and the Swiss franc.

The strategists added that a larger USD rally is a tail risk scenario tied to oil moving above USD 100 per barrel, noting that firmer crude and more hawkish Fed expectations have already been driving the move.

In the FX market setup, FXStreet said traders were watching the US June CPI data and Fed Chair Warsh’s testimony, alongside ongoing developments in the Middle East, as potential drivers for further pair movement.

Latest closeWTI crude $78.04 ▲9.3%

More like this

Sources