US Dollar Index
After closing last week almost flat, the US Dollar Index started this week on a stable note. In the early hours on Monday, the US Dollar Index is stable and marching towards the 97.5 level.
The US Dollar Index lost strength last week amid a lack of support from US economic data and increased concerns about the chance of one more interest rate hike by the Fed. Last week, New York Fed President and FOMC member William Dudley commented that recent weakness in the job market is temporary. The US labor market is expected to improve in the coming months. As a result, the market focused on Dudley’s speech and Fed Chair Janet Yellen’s speech scheduled this week. The market will mainly be focusing on core durable goods orders, CB Consumer Confidence, pending home sales, and US GDP scheduled to release this week.
At 6:00 AM EST on June 26, the US Dollar Index was trading at 97.43—a gain of 0.17%.
US Treasury yields
After falling in the week ending June 23, US Treasury yields are stable in the early hours on Monday. Lower expectations for another interest rate hike in 2017 dragged Treasury yields lower. There’s a lot of interest in Fed Chair Janet Yellen’s speech scheduled at 1:00 PM EST on June 27.
At 6:10 AM EST on June 26:
- The ten-year Treasury yield was trading at 2.158—a gain of ~0.65%
- The 30-year Treasury yield was trading at 2.727—a gain of ~0.47%
- The five-year Treasury yield was trading at 1.772—a gain of ~0.83%
- The two-year Treasury yield was trading at 1.353—a gain of ~0.96%
The iShares 20+ Year Treasury Bond ETF (TLT) fell 0.05%. The ProShares UltraPro Short 20+ Year Treasury ETF (TTT) and the ProShares UltraShort 20+ Year Treasury ETF (TBT) rose 0.15% and 0.08%, respectively, on June 23.
In the next part, we’ll discuss how commodities performed in the early hours on June 26.