Market losses widened during these moments of Monday trading amid fears of the specter of economic recession coinciding with inflation rates rising in the United States and Europe to record levels.

Everyone fell without exception except for the dollar, which remains strong while everyone else collapses, as stock, commodity, metal, and cryptocurrency markets were swept by a bloody wave of collective declines.

Only the US Dollar Index escaped that sweeping wave, as it strengthened its gains during the past few hours in an attempt to test a 20-year peak near the 105-point levels; this comes amid anticipation of the Federal Reserve's next move following the surge in inflation rates and the admission by American officials that inflation may have gotten out of control.

Markets are bracing for the worst after last weekend's inflation data storm, which prompted markets to reprice interest rates in the coming days from 50 basis points to expectations of around 75 basis points, aside from the anticipated increase by the European Central Bank.

Dollar Peak

The dollar index is currently trading near its highest levels since May 12, when it touched 105-point levels, trading near 104.7 points, an increase of 0.5%.

Negative data and expectations regarding the Federal Reserve's decision have destabilized the stock market and high-risk assets, while dollar prices and US Treasury bond yields have surged.

The dollar is heading towards its highest levels in 20 years at the 105-point levels, supported by expectations of a significant interest rate hike; the dollar index rose from a low of 101.8 points last week to current levels, up 5%.

Meanwhile, the yield on 10-year US Treasury bonds rose at the end of last week’s trading to 3.236%, the highest since January 2018.

Gold

Despite the rising inflation fears that would typically ignite traders' interest in safe havens, especially gold, the yellow metal, as usual, missed the opportunity amid strong dollar gains.

The yellow metal fell during these moments of Monday trading by about 2.5%, or the equivalent of $50, dropping to levels near $1825 per ounce.