Dollar Set for Strong Weekly Advance

2026-05-15 02:03 By Jam Kaimo Samonte 1 min. read

The dollar index climbed to around 99 on Friday and was on track to post a weekly gain of more than 1%, supported by mounting inflationary pressures that strengthened expectations for a Federal Reserve rate hike later this year.

Data released earlier in the week showed US wholesale inflation accelerated at its fastest pace since 2022 in April, while consumer prices recorded their biggest increase since 2023 amid renewed price pressures stemming from the energy shock linked to the Iran conflict.

Retail sales growth slowed as anticipated but continued to point to resilient consumer demand.

Markets have now fully ruled out the possibility of a Fed rate cut this year, with some traders increasingly pricing in a potential rate hike by December.

Meanwhile, investors remained focused on the second day of high-level talks between President Donald Trump and Chinese President Xi Jinping, after Xi warned that Taiwan could become a source of “clashes” between the world’s two largest economies.



News Stream
Dollar Set for Strong Weekly Advance
The dollar index climbed to around 99 on Friday and was on track to post a weekly gain of more than 1%, supported by mounting inflationary pressures that strengthened expectations for a Federal Reserve rate hike later this year. Data released earlier in the week showed US wholesale inflation accelerated at its fastest pace since 2022 in April, while consumer prices recorded their biggest increase since 2023 amid renewed price pressures stemming from the energy shock linked to the Iran conflict. Retail sales growth slowed as anticipated but continued to point to resilient consumer demand. Markets have now fully ruled out the possibility of a Fed rate cut this year, with some traders increasingly pricing in a potential rate hike by December. Meanwhile, investors remained focused on the second day of high-level talks between President Donald Trump and Chinese President Xi Jinping, after Xi warned that Taiwan could become a source of “clashes” between the world’s two largest economies.
2026-05-15
DXY Rises to 2-Week High
The dollar index climbed to 98.6 on Thursday, reaching its highest level in two weeks as investors focused on a two day summit between US President Donald Trump and China’s Xi Jinping while also assessing fresh economic data. In the US, retail sales slowed as expected but continued to signal resilient consumer spending. Headline retail sales rose 0.5% in April, while core retail sales, which feed directly into GDP calculations, also increased 0.5%. Earlier this week, both CPI and PPI data pointed to renewed inflationary pressures linked to the energy shock caused by the outbreak of war in Iran. Markets now expect the Federal Reserve to keep interest rates unchanged for the rest of the year, although traders still price in roughly a 28% chance of a 25 basis point rate hike in December.
2026-05-14
Dollar Holds Firm on Fed Rate Hike Bets
The dollar index hovered around 98.5 on Thursday and was up sharply this week as accelerating US inflation linked to the Iran war reinforced expectations that the Federal Reserve will keep interest rates higher for longer or potentially raise them. Data released Wednesday showed US wholesale inflation climbed in April at its fastest pace since 2022, following Tuesday’s report indicating consumer inflation rose to 3.8% last month, the highest level since May 2023. Markets have now fully priced out any possibility of a Fed rate cut this year and are increasingly assigning a higher probability to a rate hike before year-end. Meanwhile, the US Senate narrowly confirmed Kevin Warsh as Fed chair on Wednesday, with investors assessing whether he will maintain the central bank’s independence. Elsewhere, President Donald Trump is scheduled to meet Chinese President Xi Jinping, with discussions expected to focus on trade relations rather than the ongoing Iran conflict.
2026-05-14