Summary
- It reported that energy supply uncertainty is rising due to military clashes in the Middle East, driving dollar strength and inflows into safe-haven demand.
- It said fuel supply disruptions and broader inflation concerns are persisting as some Middle Eastern aluminum plants suspended production.
- According to CME Group’s FedWatch, the 36% probability of at least two Fed rate cuts this year and a 0.3% rise in the WSJ Dollar Index were confirmed.
Forecast Trend Report by Period
The dollar is strengthening as military clashes in the Middle East heighten concerns over energy supply disruptions.
On the 5th (local time), Walter Bloomberg reported that escalating tensions in the Middle East are widening inflation worries, prompting safe-haven demand to flow into the dollar. Energy supply risks have also increased as some aluminum plants in parts of the Middle East halted production due to fuel supply disruptions.
According to CME Group’s FedWatch, the probability of at least two interest-rate cuts by the U.S. Federal Reserve this year stood at 36%, up from 22% last week.
The Wall Street Journal Dollar Index (WSJ Dollar Index) rose 0.3%. The dollar gained 0.3% against the euro and 0.4% against the yen, strengthening against major currencies.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
