Forex▲ Bullish
Brent Rises for Fourth Session as Dollar Awaits CPI
Brent rose for the fourth time in five sessions. The dollar recovered from last week's jobs-report slide. Wednesday's CPI will test the inflation outlook.
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The dollar extended its recovery from last week's jobs-report slide. Traders squared positions ahead of Wednesday's consumer price print. CPI is expected to rise 0.1% month-on-month, with core up 0.2%.
The Middle East conflict is pulling in the opposite direction. FOMC officials had built their baseline on an assumption the war would end soon. That assumption is fraying. Iran has demanded reparations, a US troop withdrawal, sanctions relief, and the return of frozen assets. Washington has countered with its own set of conditions. Neither side is moving toward a commitment, traders said.
Capital Economics sees North Sea crude trading in an $80-to-$90 range. A deal to reopen the Strait of Hormuz is far from certain, the firm said. Until the status quo shifts, Brent consolidates.