US Dollar Surges as Treasury Yields Hit 10-Month High; Oil Prices Spike Amid Iran Tensions

According to FinanceFeeds, as of May 16, the US dollar is rallying amid robust economic data and elevated Treasury yields, with the 10-year yield reaching a 10-month high. Strong retail sales and industrial production have lifted the Atlanta Fed’s Q2 GDP estimate to 4.0%, while traders now price a 50% chance of a rate hike by year-end, attracting global capital to dollar assets.

Geopolitical tensions between the US and Iran have driven Brent crude to $107 per barrel and WTI above $100 per barrel on Strait of Hormuz blockade concerns, stoking global inflation fears. Gold has declined over 2% as investors abandon non-yielding bullion for higher-yielding US Treasuries, while the British Pound has weakened amid political instability and the Eurozone faces a growth outlook cut to 0.8%.