[MARKET ANALYSIS] DXY firmer on higher energy/yields and a resurgence of EUR pressure

Broad USD firmer tone this morning, with the DXY bid facilitated by higher energy prices and elevated US yields. In this kind of tape the dollar usually benefits through the terms-of-trade channel, as an oil importer advantage fades and higher Treasury yields widen rate differentials against lower-yielding G10 peers. The euro is underperforming again, and the note correctly frames this as the return of French fiscal pressure after a brief reprieve; when OATs underperform Bunds and the spread rewidens, EUR tends to trade heavy even if the immediate political news flow is thin. The yen is holding up better than peers despite widening yield differentials, which is notable because that breakdown in the usual correlation usually points to domestic support, here from labour cash earnings firm enough to keep BoJ tightening expectations alive into year-end. Attention later turns to the FOMC Minutes, where the key question is whether members still validate the current tightening path or leave room for a more balanced reaction function; that typically matters most for front-end yields and, by extension, USD follow-through.