US Dollar Is Slightly Weaker, Treasuries Yields Are Stable


Apr. 25 2017, Published 8:45 a.m. ET

US dollar

After falling to the lowest levels since November 11 on Monday, the US dollar is slightly weaker in the early hours on April 25. The sharp rise in the euro on Monday amid Macron’s lead in first round of France’s presidential election weighed on the US Dollar Index.

The US Dollar Index rose from the current levels in November to 103.82 at the beginning of January 2017 amid expectations of pro-growth policies from President Trump such as tax reforms and infrastructural spending. However, the US dollar started to weaken due to a lack of clarity in President Trump’s policies and the failed healthcare bill. The main factor that’s capping the dollar’s losses is the expectation of a corporate tax reform plan this week by President Trump. Corporate income tax is expected to be cut from 35% to 15%. The market is also looking forward to US economic releases scheduled for today.

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The market is waiting for US CB Consumer Confidence data. The data are scheduled to be released at 10:00 AM EST today. The market is expecting a reading of 122.5. A reading above 122.5 can strengthen the dollar, while a reading below 122.5 might weigh on the US dollar. At 5:30 AM EST on April 25, the US Dollar Index was trading at 98.98—a fall of ~0.12%.

Treasury yields

After a brief recovery last week, the US Treasury yield rose higher to two-week high price levels on Monday amid Macron’s victory in the first round of France’s presidential election. The market is waiting for consumer confidence data, jobless claims, and 1Q17 GDP data. The data are scheduled to release this week.

At 5:50 AM EST on April 25:

  • The ten-year Treasury yield was trading at 2.304—a gain of ~1.3%.
  • The 30-year Treasury yield was trading at 2.953—a gain of ~0.93%.
  • The five-year Treasury yield was trading at 1.832—a gain of ~1.5%.
  • The two-year Treasury yield was trading at 1.25—a gain of ~1.4%.

The iShares 20+ Year Treasury Bond ETF (TLT) fell 0.49%, while the ProShares UltraPro Short 20+ Year Treasury ETF (TTT) and the ProShares UltraShort 20+ Year Treasury ETF (TBT) rose 1.7% and 0.99%, respectively, on April 24.


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