Brent Crude May Fall to $70 as US Dollar Strengthens on Fed Rate Hike Bets
Bank of America expects the Fed to raise rates three times in 2026, boosting the US dollar and pressuring Brent crude oil prices toward $70.
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The US dollar continues to dominate forex markets as traders gain confidence in the Federal Reserve's tightening cycle. Bank of America analysts now forecast three rate hikes in 2026, citing a resilient economy and a more aggressive approach to inflation.
This dollar strength is weighing on commodity prices, with Brent crude potentially declining to $70 per barrel. The prolonged strength in the greenback typically pressures oil prices, as dollar-denominated commodities become more expensive for holders of other currencies.
Source: FXStreet Forex News