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Brent slips under $98 as EUR/USD rebounds near 1.127

Brent’s move below $98 coincided with a pause in the Dollar’s advance and a narrowing of the French-German 10-year yield spread toward 130 basis points.

Reported · Written up by our desk · Major Pairs

Brent crude fell below $98 on Tuesday as improving Middle East supply availability, a planned G7 release of emergency stocks, and Saudi Arabia’s unexpectedly aggressive cut to November crude prices for Asian buyers boosted supply expectations, Action Forex said.

With oil lower, the outlet noted easing inflation risk as sovereign yields moved lower and the Dollar’s advance paused. EUR/USD rebounded to around 1.127, while the French-German 10-year spread narrowed back toward 130 basis points.

Action Forex said the move is more of a relief than a shift in the broader trend, noting US yields are still near multi-decade highs and expectations for further Fed tightening remain intact, while France’s budget still faces political constraints. Wednesday’s FOMC minutes were flagged as the next test of whether the relief can continue.

Latest closeWTI crude $89.70 ▼1.6%|Brent $100.73 ▼1.5%|EUR/USD 1.122 ▼0.3%

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