Daily Forex Analysis

This week, the attention shifted toward Wednesday’s Federal Reserve decision as persistent inflation and surging energy costs strengthened expectations for another rate hike. 

Inflation and interest rate expectations took center stage as surging energy costs and stronger U.S. producer prices reshaped the policy outlook. The dollar index held above 99 as surprisingly hotter U.S. producer inflation pushed Fed rate hike odds to 71%. 

Monetary policy expectations remained the main driver on Thursday, with the euro advancing toward 1.1640 ahead of a widely anticipated ECB rate hike. 

Global markets remained focused on rising energy costs and expectations for further monetary tightening as Middle East tensions continued to pressure commodity markets. 

Global markets remained focused on rising energy prices and expectations for further monetary tightening across major economies. 

Global markets started the week with renewed focus on Federal Reserve tightening after stronger U.S. employment data lifted September rate-hike expectations. 

Global markets shifted as dovish comments from Fed Governor Waller reduced expectations for a September rate hike and weighed on the dollar and Treasury yields. 

Global markets remained focused on shifting rate expectations and Middle East energy risks.