By Amanda Cooper
LONDON, July 14 (Reuters) - The dollar remained in sight of 13-month highs on Tuesday ahead of U.S. inflation data, which will come under extra scrutiny as Middle East tensions boost oil prices, while Federal Reserve Chair Kevin Warsh delivers his first semiannual testimony to Congress.
U.S. and Iranian forces traded attacks in the Gulf, where maritime traffic through the Strait of Hormuz has come to near-standstill, pushing oil towards $90 a barrel. As a result, investors are now pricing in a higher chance of global interest rates rising this year.
With uncertainty over how long the latest ***** -for-tat exchanges might last and how they might affect the flow of oil to world markets, investors are focussed on the outlook for price pressures.
"Core inflation, combined with rising oil prices, is supportive for the dollar and then there's Warsh. I think he will be pressed a bit harder than he was post-Fed, which will be interesting, because he wants to keep his cards close to his chest," City Index market strategist Fiona Cincotta said of the new Fed Chair's aversion to giving much of a steer on monetary policy.
LONDON, July 14 (Reuters) - The dollar remained in sight of 13-month highs on Tuesday ahead of U.S. inflation data, which will come under extra scrutiny as Middle East tensions boost oil prices, while Federal Reserve Chair Kevin Warsh delivers his first semiannual testimony to Congress.
U.S. and Iranian forces traded attacks in the Gulf, where maritime traffic through the Strait of Hormuz has come to near-standstill, pushing oil towards $90 a barrel. As a result, investors are now pricing in a higher chance of global interest rates rising this year.
With uncertainty over how long the latest ***** -for-tat exchanges might last and how they might affect the flow of oil to world markets, investors are focussed on the outlook for price pressures.
"Core inflation, combined with rising oil prices, is supportive for the dollar and then there's Warsh. I think he will be pressed a bit harder than he was post-Fed, which will be interesting, because he wants to keep his cards close to his chest," City Index market strategist Fiona Cincotta said of the new Fed Chair's aversion to giving much of a steer on monetary policy.
16 days ago
