"While hopes of a diplomatic breakthrough weighed on yields recently, increasing doubts about the state of the talks between the US and Iran supported a rebound, which could help strengthen the greenback."
"A return of energy prices to the upside could continue to reinforce inflationary fears, prompting markets to scale back expectations for Federal Reserve interest rate cuts this year."
"Today's weekly jobless claims could provide more signals on labour market conditions and could affect monetary policy expectations to a certain extent in the case of a surprise."
The dollar held steady as market sentiment was cautious due to risks of escalation in the Middle East. Hopes for a diplomatic breakthrough weighed on yields, while doubts about US-Iran talks supported a rebound in the dollar. Rising energy prices could reinforce inflation fears, leading to scaled-back expectations for Federal Reserve interest rate cuts. Economic data, particularly jobless claims, may influence sentiment and monetary policy expectations, with a large increase in claims potentially reviving concerns about economic softening.
Read at London Business News | Londonlovesbusiness.com
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