Today's markets analysis on behalf of Konstantinos Chrysikos Head of Customer Relationship Management at Kudotrade

(MENAFN- News.Africa-Wire) The dollar traded just below its latest high on Friday, extending its run of gains as investors remained focused on heightened geopolitical risk and the inflationary impact of rising energy prices. Safe-haven demand kept the greenback underpinned, while Treasury yields hovered near their highest levels in several months, reflecting a market increasingly alert to the inflationary consequences of sustained energy disruption.

Higher oil prices continue to fuel a cautious outlook regarding the Federal ’reserve’s monetary policy, with forecasts leaning toward no cuts this year. This prospect could continue to support the dollar and Treasury yields, while more hawkish developments could push them further to the upside.

Recent labor market data pointed to a relatively stable job market. Initial jobless claims were up slightly but were in line with expectations, while continuing claims dropped to multi-year lows. This could further reduce the need for monetary policy ease, keeping upward pressure on yields and lending further support to the dollar.

The market remains highly sensitive to developments in the Middle East and any signals from upcoming US economic releases. An increase in inflation fears could prompt additional upward moves in yields and the dollar. Conversely, softer oil prices or a material weakening in US economic data could revive monetary policy easing expectations, potentially capping the dollar’s and Treasury yields’’ advance.

MENAFN29032026007071015200ID1110914311