Scope for Dollar to extend gains further – MUFG

MUFG’s Derek Halpenny notes that the recent retracement in Brent has eased immediate upward pressure on the Dollar, but he doubts the move will last given ongoing Middle East tensions and constrained supply. MUFG’s Derek Halpenny notes that the recent retracement in Brent has eased immediate upward pressure on the Dollar, but he doubts the move will last… MUFG’s Derek Halpenny notes that the recent retracement in Brent has eased immediate upward pressure on the Dollar, but he doubts the move will last given ongoing Middle East tensions and constrained supply. MUFG’s Derek Halpenny notes that the recent retracement in Brent has eased immediate upward pressure on the Dollar, but he doubts the move will last given ongoing Middle East tensions and constrained supply. He highlights that higher Oil prices from current levels appear more likely, and that a deterioration in global growth expectations could see the Dollar extend gains further.Dollar sensitivity to Brent strengthens"So it’s hard to be convinced on… For traders, the practical value is less about the headline alone and more about how it changes context, sentiment and the quality of the next decision. Watch follow-through, not just the first reaction: liquidity, volatility and confirmation across related assets usually tell the real story.