Oil Quietly Hands the Fed a Reason to Stay Hawkish
Oil prices and the U.S. dollar are both on the front foot as elevated energy costs feed Fed warnings that inflation may prove sticky.
Written by
Fawad Razaqzada
Market Analyst
Oil prices and the U.S. dollar are both on the front foot as elevated energy costs feed Fed warnings that inflation may prove sticky.
Fawad Razaqzada, StoneX Media Market Analyst, explains how the oil rebound, a hawkish Fed and rate differentials are shaping USD/JPY and USD/CHF.
Rising oil prices weigh on the currencies of major energy importers, including the euro, pound and yen. Cheaper energy could instead lead markets to price out European Central Bank and Bank of England hikes faster than Fed tightening. A cool response from Tehran and a cargo vessel incident in the Strait of Hormuz keep crude oil supply risks in focus.
This content was created by an affiliate of FOREX.com and represents the views and opinions of the author/speakers, not the views and opinions of FOREX.com, StoneX Group Inc., or its subsidiaries. The content has not been independently reviewed by FOREX.com.
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