US Dollar Slides Against G10s Despite Gulf Attacks Lifting Oil, Inflation Fears

The US dollar weakened against most of the G10 currencies during European trading on Thursday, even as fresh US-Iran attacks pushed oil prices higher, revived inflation worries, and raised bets on another Federal Reserve rate hike. The June FOMC minutes, released on Wednesday under the first Chair Kevin Warsh's supervision, advocated the rate hike, being concerned about the growing inflation. The markets showed the 87% possibility of a Fed hike this year, according to CME FedWatch. "Expect the dollar to remain bid versus the low-yielders [...] DXY is trading around 101.00, and we favour it back to the 101.50 area," ING strategists said Thursday. The US Dollar Index, a measure of the greenback's strength against the basket of major currencies, nudged lower 0.06% in the failed effort to trade above the 101 level, now trading at 100.91 on Thursday. A quick look at the majors ahead of the European lunch hour and the North American open. In Europe, EUR/USD gained 0.09% to 1.1427 after Germany's trade surplus widened to 19.1 billion euros in May after arriving at 14.7 billion euros in April. The markets predicted a print of a 14.8 billion euro surplus. On the other side, the USD.