Market Brief, North America

Good morning. The dollar is on course for a fifth consecutive daily gain as a hawkish repricing of the Federal Reserve’s expected policy path rolls on. Richmond Fed president Thomas Barkin yesterday joined many of his colleagues in suggesting that repeated supply shocks could endanger the central bank’s price-stability mandate, and warning that further tightening may be needed. Markets are now putting the odds of an October hike at more than 50%—with a total of three moves priced in by next June—and rate differentials have tilted further against all of the dollar’s major rivals, contributing to losses in spot markets....

Good morning. The dollar is edging lower as tensions in the Middle East show signs of easing and technology shares advance on a renewed wave of optimism. Brent is trading below $99 a barrel — down from $108 a week ago — after Saudi Arabia restarted its East-West pipeline and Reuters reported that Iran is willing to reopen the Strait of Hormuz within seven days if America lifts its blockade. Valuations are climbing across the artificial intelligence sector after Meta’s new assistant, Muse, received positive reviews and a pickup in users, helping justify massive capital expenditures from the major hyperscalers....