Renewed US-Iran military tensions are supporting the US dollar and oil prices. Focus remains on upcoming US CPI data and Fed Chair Warsh's semi-annual testimony to gauge future rate policy.
Key Takeaways
- 1.Renewed military tensions between the US and Iran in the Strait of Hormuz are providing support for the US dollar and boosting oil prices.
- 2.Market participants are awaiting the US CPI report for June and the semi-annual testimony from Fed Chair Kevin Warsh for insights into potential Fed rate hikes.
- 3.The Japanese Yen has weakened as verbal intervention from Finance Minister Katayama failed to produce a lasting impact on USD/JPY, which moved back above 162.00.
Table of Contents
- USD: Upside inflation risks in focus ahead of semi-annual testimony
- LONG USD POSITIONS REMAIN POPULAR AMONGST LEVERAGED FUNDS
- JPY: Higher energy prices weigh on yen after last week’s verbal intervention
- KEY RELEASES AND EVENTS
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Authors
Lee Hardman
Securities
USDJPYBrent Crude
Themes
Central Bank PolicyGeopolitical RiskInflation Dynamics
Regions
Middle EastUnited StatesIranJapan