US Dollar Gains on Euro After Hot Producer Prices Lift Fed Hike Bets

8 articles · Updated · CaixaBank Research · May 14

Higher-than-expected US producer prices pushed the dollar further up against the euro, as traders increased expectations that the Federal Reserve could raise rates.
Flat sovereign bond yields on both sides of the Atlantic suggested the currency move was driven more by shifting rate expectations than by a broader bond-market selloff.
US equities still advanced, with AI-related stocks leading gains despite the hotter inflation signal, while German shares paced euro-area markets.
Brent crude slipped 2% to $105 a barrel as markets balanced macro data with stalled US-Iran peace talks and Trump’s China visit focused on Middle East tensions and trade.

Could the US-China summit break the deadlock over Iran and reopen the Strait of Hormuz, or will global markets face prolonged energy shocks?

How might AI's rapid rise in US markets reshape global economic power, especially amid escalating geopolitical and trade tensions?

With Iran's nuclear program advancing and energy supply chains disrupted, what scenarios could trigger the next major market shock?