USD Weekly FX Commentary
Updated 25 Jul 2026 • 23:45 GMT
The US dollar has experienced mixed movements in recent days, largely influenced by geopolitical and energy market dynamics. Recent commentary suggests that the escalation in the Middle East has led to a surge in energy prices, which in turn supported higher US yields and buoyed the dollar. Additionally, upcoming FOMC, BoE, and BoJ meetings are expected to provide crucial insights, although the likelihood of a Fed rate hike remains low at 35%. Nonetheless, hawkish comments or further geopolitical developments could continue to bolster the dollar.
Key watchpoints:
- Ongoing Middle East tensions influencing energy prices and USD strength.
- Market reactions to upcoming central bank meetings, especially any shifts in Fed policy stance.
- Monitoring of geopolitical developments which may impact USD demand.
The US imposed a 37% reciprocal tariff rate on goods from Bangladesh as part of Trump’s growing trade war with countries around the world.
Migrant workers from Asia’s developing countries, such as Bangladesh, have been sending home record amounts of money in recent months, defying pandemic expectations and propping up home economies at a critical time. However, it appears workers are just sending money home in advance of their own return due to a bleak job market, particularly in the Middle East.