ING
May 20, 2026
FX Daily: More Bond Fuel for the Dollar Rally
Daily UpdateFXRates Govt BondsCommoditiesInformation TechnologyEnergy
The US dollar is strengthening as rising real yields and inflation concerns drive a bond market sell-off, while downside surprises in UK inflation reduce the likelihood of aggressive BoE hikes.
Key Takeaways
- 1.The ongoing US bond market sell-off and rising real yields are providing strong support for the US dollar.
- 2.UK inflation surprised to the downside at 2.8% YoY, making a June Bank of England rate hike a 'close call' (50/50 probability).
- 3.Global risk-off sentiment and Middle East tensions are driving the USD safe-haven appeal to its highest levels since late 2022.
Table of Contents
- USD: Bond sell-off keeps offering support
- EUR: Downside risks remain
- GBP: Lower-than-expected inflation makes BoE hike a close call
- CEE: Weighed down by negative sentiment
- Author
- Disclaimer
Document Preview
Access the Full Report
Get unlimited access to institutional research reports with a 14-day free trial.
Authors
Francesco PesoleFrantisek TaborskyChris Turner
Securities
DXYNVDABrent CrudeUS TreasuriesEURUSD
Themes
Inflation-driven Bond Sell-offGeopolitical Safe Haven DemandMonetary Policy Divergence
Regions
North AmericaUKEuropeUnited StatesUnited KingdomPoland