S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico Market
OCBC strategists Sim Moh Siong and Christopher Wong note the US Dollar (USD) has strengthened broadly on higher Oil prices, hawkish Federal Reserve (Fed) rhetoric and softer risk sentiment. They expect the USD to appreciate by around 2%–3% by end-2026, with support versus lower-yielding currencies like the Euro (EUR) and Swiss Franc (CHF). A larger rally is seen as a tail risk tied to Oil above USD100/bbl.
USD supported by oil and Fed repricing
“Rising Middle East tensions, firmer oil prices and increasingly hawkish Fed expectations have lifted the USD. While we expect modest USD gains by end-2026, a more significant rally would likely require oil prices to move above USD100/bbl.”
“The USD strengthened against almost all G10 currencies, supported by improved terms-of-trade dynamics from higher energy prices, rising US rate expectations and softer risk sentiment.”
“Looking ahead, we expect the USD to grind modestly higher, appreciating by around 2% to 3% by end-2026.”
“The greenback should remain supported against lower-yielding currencies such as the EUR and CHF.”
“A more pronounced USD rally of more than 5% remains a tail risk and would likely require oil prices to rise above USD100/bbl.”
