BNY's Bob Savage notes that the US Dollar (USD) is slightly softer as record-high equities hold despite higher Oil prices and mixed United States (US) futures. He stresses that USD remains one of the key drivers alongside Oil, with front-end rates watching inflation and growth data as markets await guidance from the Federal Reserve (Fed) and other central banks on the global energy shock.

Key card in pre-Fed reshuffle

"Record-high equity markets are holding despite higher oil prices. U.S. futures are mixed, the dollar is softer and bonds are weaker, with the focus on central bank decisions, big tech earnings and the stalled U.S.-Iran peace talks."

"The view that the Fed chair nominee Kevin Warsh will be able to move through the confirmation process has not provided any new relief, so front-end rates will be watching the inflation and growth data."

"USD and oil continue to lead as the key cards in the deck, which looks ready for a fresh reshuffle once the Fed and others provide their guidance on how to look through the global energy supply shock."

"Trading today is dominated by the lack of big news over the weekend and the wait for central bank decisions, starting with the BoJ tomorrow."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)