Dollar Weakens: Energy Price Decline Fuels USD Softness — MUFG

Lee Hardman of Mitsubishi UFJ (MUFG) pointed out that the US dollar has weakened, and as Brent crude oil prices fall back towards $90, the US Dollar Index has dropped below Friday's high. The decline in oil prices and lower US Treasury yields have eased pressure on the Federal Reserve, and the market is now awaiting the US CPI report for October. The futures market still expects the Federal Reserve to raise interest rates in December, but the expected number of rate hikes by 2027 has decreased.