Forex▲ Bullish
Crude Oil Rises as Middle East Tensions and Weak Dollar Boost
Crude futures break above key moving averages as Middle East missile strikes and a softer US CPI weaken the dollar, boosting commodities. Brent tops $85.
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Crude oil futures climbed on Tuesday, with light sweet crude breaking above its 200-day moving average and Brent topping $85 a barrel. The rally followed a fresh exchange of missile strikes between the U.S. and Iran, raising the risk of disruptions to oil flows from the region.
The dollar slipped after a softer-than-expected U.S. CPI reading, making dollar-denominated crude cheaper for foreign buyers. A weaker dollar typically supports commodities priced in the currency, and the CPI data reduced the likelihood of further Federal Reserve tightening that would have strengthened the dollar further.
FXEmpire analyst Chris said the market is reacting to headlines rather than following a typical seasonal pattern. The summer range may prove wider than usual, with the $70 area acting as a floor so far. No clear ceiling has been established, he noted.