Oil Prices Climb Further
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The dollar's recent appreciation on the Israel-Iran conflict is likely mainly due to the oil-price rally as opposed to its safe-haven role, Commerzbank's Thu Lan Nguyen said in a note. "The dollar benefits from a rise in oil prices,
Selling pressure on 10-year US Treasuries from the latest round of Israel-Iran conflict is likely to have a lasting effect if past episodes of clashes between the two nations are any guide.
Keep an eye out for signs of labor-market weakness, as well as the risk that rising oil prices could put more upward pressure on inflation.