Oil tests support as US Dollar strength snaps August rally

Share: Oil (WTI) slides lower and starts flirting with first important support near $88.  The US Dollar value keeps increasing as markets price in a  possible persistent rate differential between USD and  other  currencies. Higher Oil prices have negative implications even  for Oil producers. Oil prices drop for a second day in a row,

United States Baker Hughes US Oil Rig Count fell from previous 515 to 507

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Higher 2024 dots can translate into another USD leg higher – ING

Share: Markets have already written the script for the Fed today: a hawkish hold, and an unchanged 2023 dot plot. Any FX action would depend on potential revisions to the 2024 dots, economists at ING report. FOMC not a huge event for the Dollar The overall message by the Fed should be supportive