Surging oil prices and sinking bonds have decided the Fed need to hike
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The US dollar is sizzling today as the market senses that the Fed will have no other choice but to hike rates. Oil is up for the eigth consecutive day and the gains are accelerating. WTI is up $4.25 on the day to $100.42, breaking the key psychological barrier as it continues to
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4 itemsUS Treasury yields surge as Fed and oil pressure bonds - FOREX.com
FX Daily: Hawkish Fedspeak breaks oil-USD link
The FX desk argues that the recent hawkish comments from Federal Reserve officials are reshaping market dynamics, particularly breaking the historical link between oil prices and the USD. Per the full note from ing-think, the dollar gained traction as oil prices slipped, bolstered by statements from Chicago Fed President Goolsbee and St. Louis Fed President Musalem which suggested that inflationary pressures could persist, warranting the need for tighter monetary policy. Despite a favorable risk environment and oil dipping below $100, this supports the dollar's strength. Currently, the EUR/USD and GBP/USD pairs reflect mixed sentiment with the dollar maintaining upward momentum against them.
US dollar keeps climbing as oil, US yields stay high - The Business Times
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