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      US Dollar Strengthens as European Stocks Rise and Oil Prices Increase

      The US dollar gained strength against all major currencies on October 12, 2026, with the EURUSD pair hitting a new low for the year at 1.1155. The dollar's largest gain was against the Swiss franc, while it saw a smaller increase against the Canadian dollar. The USDJPY pair also moved above its 200-day moving average, indicating a bullish trend. Meanwhile, the US stock market closed mixed, with the Dow Jones Industrial Average rising by 196 points, while the Nasdaq Composite fell by 120 points, reflecting an uneven market ahead of the earnings season.

      European stocks experienced a positive start to the week, led by Spain's Ibex 35, which rose by 1.33%. Other major indices, including Germany's DAX and France's CAC 40, also posted gains. This uptick in European equities occurred alongside rising oil prices, with WTI crude futures increasing by 1.48% to $93.21 per barrel. The rise in oil prices is attributed to ongoing tensions in the Middle East, which continue to keep inflation risks in focus.

      Cleveland Federal Reserve President Beth Hammack provided a hawkish outlook, emphasizing the need for additional monetary restraint amid concerns over inflation expectations. She acknowledged the pressures faced by lower-income households and the balancing act required in managing employment alongside inflation. As the US Treasury market was closed for the holiday, traders remained cautious, awaiting fresh data and market reactions when trading resumes on Tuesday. The upcoming week will feature significant economic reports, including major bank earnings and inflation indicators, which will be closely monitored by investors.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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