The USD is range-bound despite a 4.2% surge in Brent crude driven by stalled US-Iran negotiations and conflict in Lebanon. Meanwhile, a strong US ISM Manufacturing print of 54.0 highlights continued domestic economic resilience and inflationary pressure.
Key Takeaways
- 1.The US dollar remains range-bound as geopolitical tensions between the US, Iran, and Lebanon keep oil prices elevated but have not yet fully disrupted broader markets.
- 2.US manufacturing shows significant resilience, with the ISM Manufacturing index jumping to a four-year high of 54.0 in May, signaling upside inflationary risks.
- 3.The ECB is fully expected to deliver a rate hike on June 11th, supported by rising Eurozone CPI forecasts of 3.2% y/y.
Table of Contents
- USD: US dollar remains range-bound despite oil rebound
- MARKETS TREAT ELEVATED OIL CAUTIOUSLY
- USD: US economic resilience on show again
- US INFLATION COMPOSITE INDEX – SUBCOMPONENT BREAKDOWN
- KEY RELEASES AND EVENTS
- CERTIFICATION
- LEGAL ENTITIES AND BRANCHES
- GENERAL DISCLAIMERS
- COUNTRY AND REGION SPECIFIC DISCLAIMERS
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Authors
Derek HalpennyAbdul-Ahad Lockhart
Securities
Brent Crude OilDXYEURUSD
Themes
Geopolitical Risk and Energy PricesUS Economic ResilienceCentral Bank Policy Divergence
Regions
North AmericaMiddle EastEuropeUnited StatesIranLebanon