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US dollar rises as Treasury yields return and Middle East tensions persist
Brent November futures trade at $107, up from $100 for the October expiry, with the spread widening to $7.
Action Forex reports the US dollar extended gains, supported by a rebound in growth in Treasury yields alongside ongoing geopolitical tensions in the Middle East.
The outlet links the move to a broader macro backdrop, saying prolonged high oil prices are amplifying second-order effects by feeding into core inflation, which could push the Fed toward more aggressive rate increases than currently expected.
Action Forex also points to the idea that the oil market is signaling expectations for the Middle East situation, citing Brent November futures at $107 versus $100 for the October expiry and a widening spread from the prior $1 to $2 range to $7.
In bond and rates, the outlet adds that competition with major corporations for investor capital continues, while it notes recent hawkish signals around inflation from FOMC comments attributed to Lisa Cook.
Latest closeBrent $98.85 ▼5.2%