US dollar under pressure as risk appetite and energy prices improve

US dollar selling picks up

Commodity currencies and sterling are at the best levels of the day against the US dollar as equities extend gains and oil perks up into positive territory.

Cable is up 47 pips to 1.3627 and is touching the best levels of the day.

There's an interesting inverse relationship to oil and the dollar unfolding when you might think it would be the opposite, seeing as how it pushes up Treasury yields and pulls forward potential rate hikes.

The dynamic though is that it's risk-positive and the dollar underperforms.

Mixed in with all that is that we have an agreement to raise the debt ceiling again, which was a stupid charade but the market fell for it again.

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October 08, 2021 at 02:47AM
Adam Button
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