Oil Shock Lifts Global Yields, Investors Await US Inflation Data
Currency markets were calm on Thursday as investors weighed the impact of rising oil prices and global bond yields. Brent crude futures remained above $100 a barrel after breaching that level on Wednesday, driven by the Iran-US conflict and its potential to disrupt energy supplies from the Middle East.
The surge in oil prices sent global bond yields back up, with 10-year Treasury yields hitting their highest levels since 2023. This had a mixed effect on currency markets, with the greenback finding some relief but the yen's rally pausing ahead of expected Bank of Japan rate hikes next week.
Market attention is now focused on key macroeconomic data releases, including US inflation readings due later in the week. The European Central Bank is set to raise interest rates for the second time this year, and investors are watching closely for signs of further tightening by major central banks.