Oil Price Pullback Eases Pressure on Interest Rates

Oil prices have pulled back today, which has taken some pressure off bond markets and allowed interest rates to ease. This shift has left the US dollar slightly softer against major currencies.

The decline in oil prices follows yesterday's surge, which had driven up yields on government bonds. However, the unexpected strong preliminary July Purchasing Managers' Index (PMI) data has not been enough to offset the pullback in yields.

Despite this, reports suggest that the Middle East conflict could escalate significantly, potentially deterring significant risk-off moves ahead of the weekend.