Recent market turbulence has pushed the US dollar back into focus. Energy prices have risen sharply since the conflict began, with Brent crude up around 45 per cent and European natural gas roughly 60 per cent higher. These moves have tightened the link between oil and the dollar, helping lift the currency, although the reaction has been more muted than past patterns might suggest.

In this video, Derek Halpenny discusses how the US dollar has reacted to the recent Middle East conflict, exploring whether the market response aligns with historical patterns. He assesses why USD strength has so far been more moderate than expected and outlines the factors likely to influence US dollar performance going forward.

Key points (with timestamps)

• 00.23 – How has the US dollar responded to the Middle East conflict to date, and is the response as expected?
• 01.18 – What might be behind the more moderate gains for the US dollar so far?
• 03.00 – So what should we expect for the us dollar going forward

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