Dollar Edges Marginally Higher, and and Equities Withstand Hawkish Language By Trump
May 11, 2026
(140) Developments in the U.S./Iranian stand-off seem to be exerting lessening influence on financial markets. The U.S. president called Iran’s response to his peace proposal “totally unacceptable” and warned that ceasefire is on “life support.”
The dollar, which is supposed to rise when geopolitics grow tense, gained a mere 0.1% against the euro and sterling , 0.2% versus the Swiss franc and 0.4% relative to the yen. Small daily changes also occurred in the DOW (+0.2%), S&P (+0.2%) and Nasdaq (+0.1%).
Bigger reactions characterized long-term interest rates and the price of oil. Ten-year sovereign debt yields increased five basis points points in Japan and Australia and four basis points in the U.K.. The price of WTI oil jumped around 3% to over $98 per barrel. A nearly 6% leap in the price of silver was another large move the Monday.
Price statistics reported today reflected the supply side constraints generated by the Middle East war.
- Chinese CPI inflation rose to a 2.-month high of 1.2% last month instead of edging marginally expected.
- Producer price inflation in China jumped to 2.8% from 0.5% in March, -0.9% in February, and -5.4% in mid-2023.
- Danish consumer price inflation rose to 1.4% from 1.2% in the prior month and zero percent in the first month of this year.
- In Lithuania, CPI inflation accelerated to a 32-month high of 5.3% last month from 4.8% in March and 3.6% in the first two months of this year.
Existing home sales in the U.S. recovered only marginally in April from the prior month’s 7-month low.
China’s trade surplus in April of $84.8 billion was 11.5% smaller than a year earlier, a bigger year-on-year percentage drop than in the first quarter.
Copyright 2026, Larry Greenberg. All rights reserved.
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