Dollar Rises as Oil Prices Soar and Jobless Claims Data Surprises

The U.S. dollar has moved higher amidst rising tensions in the Middle East, driven by a rally in oil prices and stronger-than-expected jobless claims data.

Oil prices surged 4% as Houthi rebels attacked Saudi-backed forces in Yemen, boosting demand for safe-haven assets and the American currency.

The U.S. Dollar Index (DXY) is currently trading above the resistance level at 99.85-100.00, with a successful test of this level potentially leading to further gains towards the 50 MA at 100.35.

Meanwhile, the EUR/USD pair pulled back after disappointing Euro Area Retail Sales data showed a decline of -0.3% month-over-month in June, missing analyst forecasts of +0.1% growth.

In contrast, the USD/CAD and USD/JPY pairs gained ground, with the former benefiting from falling demand for commodity-related currencies and the latter driven by rising Treasury yields, which are bullish for the pair due to the ultra-dovish policy of the Bank of Japan.