• The dollar holds near a one-week high as rising oil prices and Treasury yields support safe-haven demand.
• Brent climbs above $108, extending its six-day rally as Middle East energy-supply risks deepen.
• Fed hike expectations rise, with markets now pricing a 71.3% chance of a 25 bps hike next week.
• U.S. 10-year Treasury yield approaches the key 5% level at 4.965%.
• USD/JPY rises toward 155, while stronger Japanese inflation keeps BOJ hike expectations alive.
• Markets now turn to U.S. CPI, one of the final major inflation indicators before the Fed’s September meeting.

 What’s Next?

• Oil above $100 is becoming the key driver for markets. A sustained energy shock could keep inflation and U.S. yields elevated, supporting the dollar while increasing pressure on the Fed.