Dollar holds gains as traders await US price data after oil jumps

Live updates

1. 21h ago

   US Dollar Holds Gains as Houthi Attacks Spike Oil Prices

   The US dollar remains near weekly highs as traders anticipate US price data following an energy shock in the Middle East. Oil prices soared after Iran-backed Houthi rebels launched attacks that forced Saudi Arabia to shut its primary East-West oil pipeline. This volatility follows a strong day for the dollar driven by Producer Price Index data, which increased market expectations for Federal Reserve actions. While the dollar strengthened against the euro, the yen and various Asian currencies declined.

   Why it matters

   Energy disruptions in the Middle East often trigger a flight to safe-haven assets like the US dollar. Market participants are currently balancing geopolitical risk against upcoming US inflation indicators to predict central bank policy.

   What is confirmed

   • Iran-backed Houthi rebels forced Saudi Arabia to shut down its key East-West oil pipeline.

   What to watch next

   • Release of US price data
   • Updates on the operational status of the Saudi East-West pipeline
   Sources used for this update (5)

   1. economictimes.indiatimes.com — Coronavirus Impact on Crude Oil Price
   2. jen.jiji.com — Kazakh President arrives in New Delhi for BRICS Summit
   3. jen.jiji.com — Mongolia and France agree to strengthen school lunch program
   4. jen.jiji.com — Kazakhstan, Malawi discuss mining industry and agriculture cooperation
   5. san.com — Fighting between Houthis and Saudi Arabia drives oil prices soaring
   confidence 90%
2. 4d ago

   US Dollar Holds Gains Amid Middle East Energy Shock

   The US dollar is holding near its weekly high as traders react to an energy shock in the Middle East and await US price data. The currency recently experienced its best day in two weeks, driven by oil price jumps and Producer Price Index data that increased bets on Federal Reserve actions. While the dollar has edged higher against the euro, Asian currencies and the yen have weakened in response to the current market volatility.

   Why it matters

   Currency markets are reacting to a combination of geopolitical instability and inflation data. Shifts in US price data and European Central Bank rate hikes are currently reshaping global currency valuations.

   What is confirmed

   • The US dollar held near its highest levels of the past week on Friday.
   • The yen has slipped as the Middle East energy shock deepens.
   • Asian currencies have weakened.

   Still unconfirmed

   • The dollar is eyeing a seven-month low due to US buybacks and inflation.
   • Treasury yields declined but remain at elevated levels.
   • Hot US inflation and an ECB hike are reshaping currency markets.
   • Dollar price action is quite poor.

   What to watch next

   • Release of upcoming US price data
   • Federal Reserve policy decisions regarding inflation bets
   Sources used for this update (9)

   1. Reuters — Dollar holds gains, yen slips as Middle East energy shock deepens
   2. Bloomberg.com — Dollar Has Best Day in Two Weeks as PPI, Oil Add to Fed Bets
   3. Yahoo Finance — Dollar Eyes Seven-Month Low With US Buybacks, Inflation In Focus
   4. Investing.com — Dollar rises as hot U.S. inflation, ECB hike reshape currency markets
   5. Investing.com — Asian currencies weaken as yen slips, dollar holds near weekly high
   6. ING Think — FX Daily: Dollar price action quite poor
   7. Barron's — Dollar Edges Higher, Treasury Yields Decline But Stay at Elevated Levels
   8. www.marketscreener.com — Oura CMO Says Wearable Health Tracking Moving Beyond Checkups
   9. lufkindailynews.com — Dollar edges higher against euro after U.S. inflation data
   confidence 70%