📊 Daily Forex Sentiment Report — May 15, 2026 Dollar strength returns as markets bet on a more hawkish Fed 🇺🇸 U.S. Dollar The dollar has regained strong short-term momentum. Markets had hoped the Trump–Xi meeting might deliver positive geopolitical headlines (possibly involving Iran), which could have supported risk assets and capped USD strength — but so far, nothing meaningful has emerged. Meanwhile, weaker equity futures and higher oil prices are reinforcing the bullish dollar narrative, especially after fresh inflation signals. Key U.S. data: 🔹 PPI came in hot earlier this week 🔹 Import prices jumped +1.9% MoM, with non-energy goods also rising +0.7% 🔹 Initial jobless claims: 211K (up from 199K) 🔹 Continuing claims: 1.78M Labor softness is appearing, but layoffs remain relatively low. Consumer data remains resilient: 🔹 Retail sales: +0.5% (in line) 🔹 Gasoline sales: +2.8% 🔹 Sporting goods & electronics: +1.4% Bottom line: U.S. consumers are still spending despite rising fuel costs, supporting the “resilient economy” narrative rather than recession fears. The DXY has broken above late-April highs, and if geopolitical tensions remain unresolved, a move toward 100 becomes increasingly realistic. 🇪🇺 Euro EUR/USD broke below the key 1.1700 level, opening the path toward 1.1600. A widening 2-year rate spread between the Fed and ECB has erased one of the euro’s recent support pillars. 🇬🇧 Pound GBP weakened as political uncertainty in the UK increased, with markets pricing greater leadership risk. EUR/GBP may still have room to move higher. 🪙 Crypto Impact This macro setup is short-term bearish for crypto. A stronger dollar + rising rate expectations + sticky inflation usually mean tighter liquidity and less appetite for risk assets. That puts pressure on BTC and especially altcoins. However, if inflation remains structurally elevated and the Fed loses policy flexibility, the longer-term Bitcoin-as-hard-asset narrative could strengthen. Short term: bearish / volatile Long term: potentially constructive for $BTC if macro instability persists