Inflation Alarm Bells Ringing! Global Bond Market Selloff Hits Risk Assets, and Rising Interest Rates May Undermine the AI-Driven Bull Market in U.S. Stocks

Against the backdrop of no clear signs of an end to the Middle East conflict, investors are increasingly being influenced by its key economic consequences—rising global interest rates and inflation risks—as they enter a new week.

Zhitong Finance7minutes ago

The US dollar has risen for five consecutive sessions, approaching the 100 mark, while non-US currencies have collectively weakened. However, the movement of the Japanese yen appears somewhat unusual.

This week, the global foreign exchange market was dominated by a significant strengthening of the US dollar. The US Dollar Index rose by 1.44% on a weekly basis, closing positive for five consecutive trading days, breaking through the middle Bollinger Band at the 98.40 level. The MACD red histogram expanded, establishing a short-term strong trend. The British pound fell 2.35% against the US dollar on a weekly basis, while the euro dropped 1.38% against the US dollar. The US dollar rose 1.35% against the Japanese yen and 0.58% against the Canadian dollar. Overall, amid heightened volatility in risk assets, the US dollar's role as a primary safe-haven and high-interest-rate currency has been reinforced. US Dollar Index: This week's performance review shows that the index closed positively for five consecutive trading days.

FX678 FinanceMay 16 12:47

Is the market severely underestimating the Fed? The US dollar's "downside is limited," and a turning point may be approaching?

The head of G10 FX strategy at Bank of America believes that the global inflation shock triggered by energy has led to the repricing of interest rate paths by other G10 central banks, but the foreign exchange market remains reluctant to significantly factor in rate hikes by the Federal Reserve.

Golden10 DataMay 15 22:44

Dollar Could Drift Higher as It Retains High-Yielding Status -- Market Talk

WSJMay 15 22:33

The US dollar rose in early trading on Friday, with markets focusing on the Empire State Manufacturing and industrial production data.

The US dollar rose against major trading counterparts in early trading on Friday, with markets awaiting the release of the New York Federal Reserve's Empire State Manufacturing Index for May at 8:30 AM Eastern Time and industrial production data for April at 9:15 AM. The St. Louis Fed is expected to update its real-time forecast for first-quarter GDP at noon. Overview of the foreign exchange market on Friday: The euro fell to 1.1646 against the dollar from Thursday’s New York closing level of 1.1671 and from an earlier high of 1.1707 during the day. Eurozone reserve assets declined in April, according to data released early Friday. The next European Central Bank meeting is scheduled for June 11. The pound

AASTOCKSMay 15 19:33

How has the US stock market performed during previous Federal Reserve transitions?

Huafu Securities noted that the impact of Federal Reserve leadership transitions on U.S. equities exhibits a pattern of 'short-term stability followed by medium-term amplification': markets typically rise steadily in the first month, but volatility risks intensify significantly after three to six months (with a maximum drawdown of -13.14% within six months). What truly determines market direction is not the personnel change itself, but rather the prevailing inflation level, valuation positioning, and policy continuity at the time of the transition.

wallstreetcnMay 15 18:34