The US dollar is consolidating amidst geopolitical tensions in the Middle East and a less hawkish tone from the June FOMC minutes. Meanwhile, the Euro is gaining support from higher ECB rate hike expectations despite emerging political risks in France.
Key Takeaways
- 1.The US Dollar is consolidating while navigating cross-currents from geopolitical tensions in the Middle East and a less hawkish-than-feared FOMC minutes.
- 2.Energy supply risks through the Strait of Hormuz have pushed oil prices higher, though foreign exchange market spillovers remain limited for now.
- 3.The Euro is facing upward pressure from hawkish ECB repricing, but faces potential downside risk from Marine Le Pen's presidential candidacy.
Table of Contents
- USD: FOMC minutes dampen support from renewed Middle East tensions
- FED RATE HIKE EXPECTATIONS REMAIN KEY DRIVER FOR USD
- FOMC MINUTES SHIFT AWAY FROM PROVIDING FORWARD GUIDANCE
- EUR: ECB rate hike expectations & French political risks in focus
- KEY RELEASES AND EVENTS
- CERTIFICATION
- LEGAL ENTITIES AND BRANCHES
- GENERAL DISCLAIMERS
- COUNTRY AND REGION SPECIFIC DISCLAIMERS
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Authors
Lee Hardman
Securities
Brent Crude OilUSD/EUR
Themes
Central Bank PolicyGeopolitical Risk
Regions
Middle EastEuropeUnited StatesIranKuwait