US Dollar Index and US Treasury Yields Are Weaker



US Dollar Index

Last week, the US Dollar Index fell to the lowest levels in ten months. It opened this week on a stable note by gaining on Monday. However, the US Dollar Index lost its strength on July 18. In the early hours on Tuesday, the US Dollar Index is trading with weakness at ten-month low price levels.

Last week, the US dollar lost strength due to Fed Chair Janet Yellen’s dovish comments and weaker-than-expected consumer price index and retail sales data. The US dollar is weaker on July 18 due to dented sentiment after Congress repealed the health care bill. The lower Empire Manufacturing Index also weighed on the dollar. The Empire Manufacturing Index fell from 19.8 in June to 9.8 in July—less than the market’s expected reading of 15. A reading above zero indicates an expansion in economic activity.

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US Treasury yields

US Treasury yields started this week with dented sentiment amid weaker-than-expected retail sales and inflation data. US Treasury yields started to fall after Yellen’s dovish comments last week. There aren’t any speeches by Fed officials this week. The market is looking forward to the Fed’s meeting on July 25–26.

At 7:10 AM EST on July 18:

  • The ten-year Treasury yield was trading at 2.291—a fall of ~0.71%.
  • The 30-year Treasury yield was trading at 2.880—a fall of ~0.48%.
  • The five-year Treasury yield was trading at 1.841— a fall of ~0.64%.
  • The two-year Treasury yield was trading at 1.356—a fall of ~0.3%.

The iShares 20+ Year Treasury Bond ETF (TLT) rose 0.28%. The ProShares UltraPro Short 20+ Year Treasury ETF (TTT) and the ProShares UltraShort 20+ Year Treasury ETF (TBT) fell 0.59% and 0.57%, respectively, on July 17.

In the next part, we’ll discuss how crude oil, copper, and precious metals performed in the early hours on July 18.


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