EUR/USD, GBP/USD flows - Dollar stretches firmer with spreads
Dollar extends its broad post Fed gains, as Fed speakers maintain hawkish skew; Oct hike just above 50-50
EUR/USD tracks short end spread action; eying oil and relative impact going forward
Brent sitting below $100, talking up Iran prospects
The dollar retains its moderate broad bid, helped by generally hawkish Fed speakers that bolsters an Oct follow-up rate hike, sitting just above 50-50 market pricing. Fed comments’ common theme was that activity if anything is firming and that inflation is broader than just energy driven.
Oil prices also remain on the bid side of balanced, holding back below $100 again on Brent front month after wobbling on Trump’s belligerent speech. Despite that, talks are continuing, talking up prospects of a settlement, with Iran said to be discussing conditions through the Qatari mediator
EUR/USD’s extended post Fed low is 1.1420~ after taking out 1.1450~, with 1.1410 support in the current stretched move currently standing in the way of fully back to 1.1350-25 lows. Cable already closer to its next 1.13-1.13270 lows.
US-DE 2yr spreads have widened out to the high 150s, closing towards the 164 July highs, with the UK spread sitting at those July tights and before that the Jul25 bests. Spread direction is going to be key near-term especially if oil does continue to ease on deal hopes or delivery.