Support
Dollar near highest level in 3 weeks
Middle East tensions and strong labor market data have lifted the dollar this week.
Market sees a 37% chance of a 50 basis-point Fed rate cut in November.
EUR/USD falls to 1.1035, pressured by easing eurozone inflation and potential ECB rate cuts.
Oil prices rise on concerns of Middle East conflict disrupting crude supply; OPEC+ keeps output policy unchanged.
The dollar and the euro
The U.S. dollar strengthened on Thursday, buoyed by solid employment figures and the instability stemming from the ongoing Middle East conflict. The Dollar Index, which measures the dollar against a group of six major currencies, was up 0.2% at 101.597, close to its highest level in three weeks.
The dollar gained momentum following Wednesday's ADP private payrolls report, which revealed a stronger-than-anticipated rise of 143,000 jobs in the U.S. for the past month.
According to the CME Group's FedWatch Tool, the market is currently pricing in about a 37% likelihood of an additional 50 basis-point rate cut by the U.S. Federal Reserve on November 7, following last month's significant reduction.
Meanwhile, the EUR/USD pair dipped continued to fall near 1.1035, with the euro nearing a three-week low due to continued signs of easing inflation in the eurozone. The Eurozone inflation came at 1.8% below the ECB target of 2%, and market still expect the ECB to cut rates by 25 basis points.
Commodities
Oil prices climbed on Thursday amid worries that the intensifying conflict in the Middle East could threaten crude supply from this critical exporting region.
Additionally, OPEC+ members met on Wednesday and recommended no change to their output policy. The group is set to increase production by 180,000 barrels per day each month, beginning in December.
WTI was last seen near $71.2 while Brent rose to $76.
