The Dollar Shrugged Off Iran Sanctions and Oil Fell 3%
Oil slipped despite fresh sanctions because markets are weighing a diplomatic path back to talks, including a reported push from Pakistan to revive stalled negotiations. In Germany, the Ifo Institute business climate index climbed to a one-year high for a fourth straight month, which helps explain why the DAX sits near record levels and why the euro has resisted selling pressure. Attention now turns to U.S. core PCE inflation data and the Jackson Hole symposium, with Treasury yields still elevated and capable of turning on the dollar.
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The EUR/USD outlook stays rangebound as the U.S. dollar draws its calm from softer oil prices and steadier bond yields, not fresh strength.
Fawad Razaqzada, StoneX Media Market Analyst, breaks down why the latest U.S. sanctions on Iran pushed crude lower instead of higher, and what is holding the euro up.
Oil slipped despite fresh sanctions because markets are weighing a diplomatic path back to talks, including a reported push from Pakistan to revive stalled negotiations. In Germany, the Ifo Institute business climate index climbed to a one-year high for a fourth straight month, which helps explain why the DAX sits near record levels and why the euro has resisted selling pressure. Attention now turns to U.S. core PCE inflation data and the Jackson Hole symposium, with Treasury yields still elevated and capable of turning on the dollar.
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