Rising oil weighs on sentiment into US CPI data
Rising oil prices are making the wait for the next US CPI report increasingly nervous. US crude is consolidating near $82 per barrel after surging more than 6% on Monday, as little progress in US-Iran negotiations keeps supply risks elevated and the Strait of Hormuz remains in focus. Higher oil prices are reviving inflation concerns, pushing global yields higher and complicating the outlook for the Federal Reserve.
In FX, the US dollar remains under pressure as doubts over Fed independence revive the âsell Americaâ trade, while gold benefits from geopolitical uncertainty, rising debt levels and weaker confidence in US assets....