US Dollar Index
The US Dollar Index started this week on a positive note but lost momentum as the week progressed. After falling on Thursday, the US Dollar Index is stable in the early hours.
The US Dollar Index already lost strength on Wednesday after the Fed’s FOMC meeting minutes were released. The minutes didn’t provide a clear picture about one more interest rate hike in 2017. The minutes weakened the US Dollar Index on July 5. On Thursday, the release of mixed to weaker-than-expected economic data pulled the US Dollar Index lower. According to data released by the US Department of Labor, US initial jobless claims in June rose by 4,000 to 248,000—higher than the market’s forecast of 243,000 jobless claims. The ISM services PMI rose to 57.4 in June, while the services unemployment index fell from 57.8 in May to 55.8 in June.
The market is looking forward to non-farm payrolls data scheduled to release at 8:30 AM EST today.
US Treasury yields
After trading with lower momentum for two trading days, US Treasury yields rose on Thursday amid the bond sell-off. Speculations about major central banks’ monetary easing stance triggered a global sell-off in government bonds. Treasury yields that move opposite to bonds rose higher on July 6. Treasury yields are strong in the early hours on Friday.
At 5:40 AM EST on July 7:
- The ten-year Treasury yield was trading at 2.382—a gain of ~0.55%
- The 30-year Treasury yield was trading at 2.912—a gain of ~0.29%
- The five-year Treasury yield was trading at 1.952— a gain of ~0.51%
- The two-year Treasury yield was trading at 1.415—a gain of ~0.65%
The iShares 20+ Year Treasury Bond ETF (TLT) fell 0.83%. The ProShares UltraPro Short 20+ Year Treasury ETF (TTT) and the ProShares UltraShort 20+ Year Treasury ETF (TBT) rose 2.6% and 1.6%, respectively, on July 6.
In the next part, we’ll discuss how commodities performed in the early hours on July 7.