Forex
Dollar Rises as Oil Prices Soar Amid Middle East Tensions
The US dollar gained strength as investors sought safe-haven assets amid rising oil prices and Middle East tensions. The Sterling, or GBP, slipped against the greenback by about 0.07% to a trading price of 1.3487 after earlier reaching a peak near 1.3505. Oil prices surged with Brent up over 2.40% and WTI up 1.10%, driving up the US 10-year Treasury yield to 5.041%, its highest level since 2007.
The Federal Reserve is set to raise interest rates by 25 basis points on Wednesday, with implied odds at 95%. Meanwhile, the Bank of England is expected to keep rates unchanged on Thursday, but markets are pricing in one hike towards the end of 2026 and another a year later.