{"id":130665,"date":"2026-05-15T18:47:26","date_gmt":"2026-05-15T21:47:26","guid":{"rendered":"https:\/\/ubirataonline.com.br\/dollar-soars-and-gold-plunges-as-global-bond-yields-climb\/"},"modified":"2026-05-15T18:47:28","modified_gmt":"2026-05-15T21:47:28","slug":"dollar-soars-and-gold-plunges-as-global-bond-yields-climb","status":"publish","type":"post","link":"https:\/\/ubirataonline.com.br\/en\/dollar-soars-and-gold-plunges-as-global-bond-yields-climb\/","title":{"rendered":"Dollar Soars and Gold Plunges as Global Bond Yields Climb"},"content":{"rendered":"


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The dollar index (DXY00) rallied to a 2.5-week high today and is up by +0.39%.\u00a0 The dollar is climbing today on concerns that strong US economic news and soaring crude oil prices will prompt the Fed to tighten monetary policy, a bullish factor for the dollar. \u00a0Today’s economic news was bullish for the dollar after the May Empire manufacturing survey general business conditions unexpectedly rose to a 4-year high, and Apr manufacturing production posted its biggest increase in 14 months.\u00a0 Also, the 10-year T-note yield rose to an 11.75-month high of 4.58% today, strengthening the dollar’s interest rate differentials.\u00a0Finally, slumping equity markets today are boosting liquidity demand for the dollar.<\/p>\n

The US May Empire manufacturing survey of general business conditions unexpectedly rose +8.6 to a 4-year high of 19.6, stronger than expectations of a decline to 7.2.<\/p>\n

More News from Barchart <\/h3>\n

US Apr manufacturing production rose +0.6% m\/m, stronger than expectations of +0.2% m\/m and the largest increase in 14 months.<\/p>\n

Swaps markets are discounting the odds at 3% for a 25 bp rate cut at\u00a0the next FOMC meeting on June 16-17.<\/p>\n

EUR\/USD (^EURUSD) tumbled to a 5-week low today and is down by -0.33%. \u00a0Today’s stronger dollar is pressuring the euro.\u00a0 Also, today’s +3% jump in crude oil prices is negative for the Eurozone economy and the euro, as Europe imports most of its energy needs.\u00a0 Losses in the euro are limited after the 10-year German Bund yield soared to a 15-year high today, strengthening the euro’s interest-rate differentials.<\/p>\n

Swaps are discounting an 89% chance of a +25 bp rate hike by the ECB at the next policy meeting on June 11.<\/p>\n

USD\/JPY (^USDJPY) today is up by +0.20%. \u00a0The yen has moved lower every day this week, falling to a 2-week low against the dollar today.\u00a0 The strength of the dollar is pressuring the yen.\u00a0 Also, today’s +3% jump in crude oil prices is negative for the Japanese economy and the yen as Japan imports more than 90% of its energy needs.\u00a0 In addition, soaring T-note yields today are bearish for the yen.<\/p>\n

Losses in the yen are limited after Japan’s April produce prices surge pushed the 10-year JGB bond yield to a nearly 29-year high of 2.736% today, strengthening the yen’s interest rate differentials.\u00a0 Also, the largest increase in Japanese machine tool orders last month in 4.25 years is hawkish for BOJ policy and supportive for the yen.<\/p>\n<\/p><\/div>\n