Dollar Roars Higher as Stocks Sink and Oil Prices Soar

The dollar index DXY has rallied to a 1.5-week high, up by +0.52%, as T-note yields rise and stocks slump.

This surge in the dollar is also driven by expectations that the Federal Reserve will raise interest rates by 25 bp at its upcoming FOMC meeting, which carries an 91% chance of occurring.

The yen is under pressure due to the stronger dollar and Japan's July industrial production being revised downward to -0.2%, m/m from +0.1% previously reported.

Precious metals prices have sharply declined, with December COMEX gold (GCZ26) down -96.00 (-2.18%) and silver (SIZ26) down -1.773 (-2.72%), as the dollar's rally weighs on metals prices and hawkish comments from ECB officials weigh in.