Home›Forex›Major Pairs›Back-end yields and risk-off sentiment support USD con…

Back-end yields and risk-off sentiment support USD consolidation

ING says Fed hike pricing is firm and notes skepticism around US-Iran talks, with oil supported after the UN summit.

Reported · Written up by our desk · Major Pairs

ING strategists Francesco Pesole and Frantisek Taborsky say rising back-end yields and risk-off sentiment are helping the US dollar consolidate recent gains, even as the rally may look stretched versus short-term fundamentals, according to FXStreet.

They point to resilient oil prices, cautioning that skepticism around US-Iran talks has so far limited any bounce in bonds, which they describe as the dynamic behind the dollar’s strength.

The analysts also cite increased Federal Reserve hike pricing, adding that they expect the USD rally to persist, with Brent potentially reaching $110 per barrel before month-end.

FXStreet also notes that reports of US and Iran discussing a phased deal to reopen the Strait of Hormuz briefly pushed oil lower, but losses were fully recouped within a couple of hours, reinforcing the view that de-escalation is not imminent.

Latest closeBrent $100.98 ▼2.0%

More like this

Sources