Forex
Oil Tops USD 100/bbl as ECB Prepares to Hike Interest Rates
The price of oil has reached over USD 100 per barrel as tensions between the US and Iran continue to escalate. This comes ahead of a key decision from the European Central Bank (ECB) on interest rates, with most expecting a 25bp hike.
The ECB is set to raise policy rates to 2.50%, in line with market expectations and consensus. However, President Lagarde may not provide any firm guidance on future rate hikes, which could limit the market's reaction.
In other economic news, US Producer Price Index (PPI) data for August is expected to show a rise in headline PPI inflation due to higher oil prices.