Rising oil prices are making the wait for the next US CPI report increasingly nervous. US crude is consolidating near $82 per barrel after surging more than 6% on Monday, as little progress in US-Iran negotiations keeps supply risks elevated and the Strait of Hormuz remains in focus. Higher oil prices are reviving inflation concerns, pushing global yields higher and complicating the outlook for the Federal Reserve.
In FX, the US dollar remains under pressure as doubts over Fed independence revive the ‘sell America’ trade, while gold benefits from geopolitical uncertainty, rising debt levels and weaker confidence in US assets.
With Fed guidance becoming increasingly opaque, tomorrow’s CPI report could leave markets doing the heavy lifting.
Watch the full episode to find out more!
Intro
1:03 Rising oil weighs on appetite
2:57 Circular AI worries are back
5.08 FX update
7:25 Forget Warsh, investors decide where borrowing costs will go.
