EUR/USD rises to 1.1203 as the US Dollar softens and WTI Crude Oil falls more than 3% to $86.85, with investors awaiting Tuesday's US CPI print to gauge future Federal Reserve policy.
The pair trades around 1.1203, up 0.55% on the day, as the Dollar softens with DXY down 0.44% near 101.85. Softer Oil eases US inflation risk while both the Fed (about 80% chance of a December hike priced) and the ECB may tighten in December. Tuesday's US CPI is the key risk that could reverse the move.
WTI trades around $86.85 a barrel, down more than 3% on the day, as President Trump played down the likelihood of renewed strikes on Iran and Qatar's PM holds talks in Washington. However, Tehran's demands (lifting the naval blockade, sanctions and asset releases) mean the diplomatic breakthrough is uncertain, which could quickly reverse the decline.
The Dollar is weaker across the board today, with DXY down 0.44% around 101.85 and the strongest losses against the New Zealand Dollar (-1.32%) and Euro (-0.55%). Falling Oil prices reduce inflation pressure, but resilient US data (NFP 165K, unemployment 4.1%) and about 80% odds of a December Fed hike cap the downside.
The Euro advances to 1.1203, gaining 0.55% as the US Dollar retreats with the DXY index at 101.85. WTI Crude Oil prices dropped over 3% to $86.85 following diplomatic efforts between the US and Iran, reducing immediate inflation pressures. Markets remain focused on Tuesday's US CPI data, which could influence the roughly 80% probability currently priced for a Federal Reserve rate hike in December.
The US Dollar is retreating alongside falling Oil prices amid US-Iran diplomacy, and EUR/USD is up 0.55% near 1.1203.
Tuesday's US CPI release is the main risk: stronger inflation could boost expectations of further Fed rate hikes and strengthen the Dollar against the Euro.
WTI fell more than 3% to around $86.85 as US-Iran tensions eased, with President Trump downplaying the likelihood of renewed strikes and diplomatic talks underway in Washington.
Yes. The article notes that without progress in the talks — Tehran wants the naval blockade lifted, sanctions removed and assets released — Oil prices may struggle to sustain their decline.
The Dollar is softening as Oil prices drop more than 3% on US-Iran diplomatic efforts, easing inflation pressure, even though strong jobs data still points to a possible December Fed rate hike.