Forex
Dollar Surges Amid Oil Price Spikes and Hike Bets
The US dollar has reached near two-week highs as oil prices surge to $107 per barrel, driving Treasury yields up and solidifying expectations of a Federal Reserve interest rate hike on Wednesday.
CME's FedWatch tool now puts the probability of an increase at around 93%, with economists polled by Reuters also predicting at least one more hike by the end of March.
The inflation outlook is now heavily influenced by oil prices, but analysts at BCA believe that market conviction for further hikes may be overstated, citing limited hawkishness in the curve.