Rates, USD, and the WTI outlook

Watching the latest CPI print, it's hard not to connect the dots to potential rate hikes, or at least the 'higher for longer' narrative firming up. A stronger dollar, which we're seeing some signs of, like the $USDMXN action today holding above 17.086, generally puts downward pressure on commodities denominated in it. WTI's recent run felt a bit like a squeeze in a supply-constrained environment, but if global demand signals soften due to higher borrowing costs, that could easily get unwound. I'm keeping an eye on how the dollar index reacts to any Fed speak this week; if it starts gaining real traction, I'd expect some profit-taking in the energy sector, potentially dragging $ROSE down from its current 11.66 levels as broader market sentiment shifts away from risk assets.