How Positive Equity Sentiment Is Affecting the Japanese Yen
The Japanese yen (FXY) closed for the week ending June 23 at 111.3, depreciating against the US dollar by 0.39%.
US Treasuries (GOVT) had another roller coaster ride this week due in part to the conflicting views from Fed members and weaker-than-expected economic data.
After closing last week almost flat, the US Dollar Index started this week on a stable note. The US Dollar Index is stable and near the 97.5 level.
Last week, US Treasury yields started on a stronger note. Yields moved lower as the week progressed amid doubts about a gradual increase in interest rates.
The US unemployment rate is close to the desired 4.5% and inflation has moved closer to the Fed’s target rate of 2.0%.
Yields in the shorter timeframe such as the two-year yield (SHY) and T-notes (SCHO) are rising more than the ten-year or the 30-year (TLT) yields.
Bond markets (BND) have been buzzing about the flattening US Treasury yield curve. In this series, we’ll explore what this means and how it’s becoming a concern for global markets.
The US Dollar Index lost momentum at the end of last week and closed the week almost flat. It started this week on a positive note.
US Treasuries (GOVT) had a mixed response to the FOMC statement and the Fed’s interest rate hike.
The US dollar regained strength on Thursday and closed the day at one-month high price levels. The US Dollar Index is stable in the early hours on Friday.
The US ten-year yield fell to 2.1% after the weak US data report, US inflation showed a decline of 0.1%, and retail sales fell by 0.3% for May 2017.
In her post-meeting press conference, Janet Yellen warned that the Fed could implement its balance sheet unwinding process soon if the economy continues to perform as expected.
The US Dollar Index started the week on a weaker note and fell for three consecutive trading days. It regained strength later on June 14.
In the early hours on Wednesday, the US Dollar Index is slightly weaker. At 5:45 AM EST on June 14, the US Dollar Index was trading at 96.99—0.01% higher.
After gaining some strength last week, the US Dollar Index was stable on June 12. The US Dollar Index is slightly weaker in the early hours on Tuesday.
Bond yields of U.S. Treasuries managed to recover from the losses of the previous week. Demand for US bonds receded.
The US Dollar Index regained some strength and pulled away from seven-month low price levels. The US Dollar Index is stable early on June 12.
Bond yields have slipped on the latest US non-farm payroll data but also on the reduced probability of 2017 interest rate hikes by the Fed.
US markets (ITOT) have continued to rise since the US election and have remained in positive territory in the last six months.
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