The USD is trading broadly lower as commodity-linked currencies benefit from rising energy prices. Markets are awaiting US CPI data, which may temper expectations for Federal Reserve rate hikes.
Key Takeaways
- 1.Commodity-linked currencies are outperforming against a broadly soft USD, driven by rising crude oil prices amidst geopolitical tensions in the Gulf.
- 2.Market participants are cautious ahead of US CPI data, with expectations that soft inflation prints may challenge aggressive Fed rate hike pricing.
Table of Contents
- Overview
- USDCAD Vs. Estimated Fair Value
- Commodity FX Benefits from Higher Energy Prices
- USDCAD
- USDCAD short-term technicals
- EURUSD
- EURUSD short-term technicals
- GBPUSD
- GBPUSD short-term technicals
- USDJPY
- TODAY'S CALENDAR
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Authors
Shaun OsborneEric Theoret
Securities
USDJPYUSDCADEURUSDGBPUSD
Themes
Commodity currency outperformanceFed rate hike repricingGeopolitical risk in the Gulf
Regions
GlobalMiddle EastUnited StatesCanadaGermany