The US Dollar rallies to April 2025 highs on hawkish Fed bets, pushing EUR/USD below 1.1100 and Gold under $4,000, while WTI crude oil recovers to $87.00 per barrel.
The Dollar pushed to levels last seen in April 2025, with DXY just pips below the key 103.00 hurdle, driven by persistent bets on a Fed rate hike in December and a marked rebound in US Treasury yields across the curve. Fedspeak from Hammack, Barr, Goolsbee and Daly could extend the move if it reinforces the hawkish pricing.
The pair collapsed below 1.1100 to levels last traded in May 2025, purely on the sharp US Dollar rebound backed by Fed rate-hike bets and higher Treasury yields. Speeches by the ECB's Vujčić and Lagarde offer limited support amid an otherwise empty domestic calendar.
Gold extended Tuesday's retracement and slipped back below the key $4,000 mark per troy ounce, pressured by extra gains in the Greenback and a marked bounce in US Treasury yields across the board. A stronger dollar and higher yields raise the opportunity cost of holding gold, keeping the bearish tone intact.
The pair climbed to fresh two-month tops and is trading closer to the key 160.00 barrier, carried by broad Dollar strength on Fed December rate-hike bets. The 160.00 barrier and the BoJ's Asada speech are the near-term watch points.
Front-month December WTI futures reversed three straight daily pullbacks and reclaimed the area beyond $87.00 per barrel as effervescence resurfaced in the Middle East. The upcoming EIA weekly report on US crude oil stockpiles is the next data risk.
The US Dollar Index nears the 103.00 level, driven by rising Treasury yields and expectations of a December Fed rate hike. This strength has pressured major pairs, with EUR/USD falling below 1.1100 and Gold slipping under $4,000 per troy ounce. Meanwhile, WTI crude oil reclaimed the $87.00 per barrel mark amid renewed Middle East tensions.
Markets are betting on another Fed rate hike in December, and US Treasury yields have rebounded sharply, pushing the Dollar Index to its highest levels since April 2025, just below 103.00.
The pair has broken below 1.1100, reaching levels last traded in May 2025, as the Dollar rallied on expectations of another Fed rate hike in December.
Gold slipped back below $4,000 per troy ounce as the US Dollar strengthened further and US Treasury yields rebounded across the board, both weighing on the metal.
The pair hit fresh two-month tops and is trading closer to the key 160.00 barrier, supported by the broad US Dollar rally.
WTI reversed three consecutive daily declines and moved back above $87.00 per barrel as tensions resurfaced in the Middle East; the weekly EIA stockpiles report is the next focus.