Dollar Surges as Oil Prices Soar Above $100, Raising Chance of July Rate Hike

The US dollar has continued its advance against major global currencies, including the euro, despite the European Central Bank's hawkish rhetoric and decision to leave its deposit rate at 2.25%.

Christine Lagarde noted that several Governing Council members considered acting again now, but a unanimous decision was made to wait.

The EURUSD is influenced more by events in Washington than in Frankfurt, with the Fed's latest rate forecasts indicating half of officials expect a rate hike and the rest expecting rates to remain unchanged.

The rising oil prices above $100 per barrel are increasing the chances of a move up by the Fed as early as its July meeting, with a 34% probability according to CME derivatives.