US Dollar Index Is Strong in the Early Hours on October 27


Oct. 27 2017, Published 9:53 a.m. ET

US Dollar Index

After regaining strength last week, the US Dollar Index moved higher on Monday and started this week strong. However, the US Dollar Index fell in the next two trading days amid the dented market sentiment in US markets. The US Dollar Index regained strength on Thursday and opened higher on Friday.

With improved market sentiment, the US Dollar Index is trading with strength at three-month high price levels in the early hours.

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Market sentiment

The market sentiment in the US dollar was strong at the beginning of the week amid increased confidence about economic growth. Tax reform hopes and the chances of an interest rate hike improved the market sentiment. On Thursday, the US Dollar Index rose amid the passage of a budget resolution by the House of Representatives. The resolution cleared the path for the Trump Administration’s tax reform plans. The release of stronger-than-expected corporate earnings on October 26 also pushed the US Dollar Index higher. The market is looking forward to the release of third-quarter US GDP data at 8:30 AM EST today.

At 7:10 AM EST on October 27, 2017, the US Dollar Index was trading at 94.88—a gain of 0.28%.

US Treasury yields

After starting this week lower by pulling back on Monday, US Treasury yields regained strength and gained in the next three trading days. Amid the improved market sentiment, the Treasury yields are strong this week. The yields opened lower on Friday, but are stable in the early hours.

Movement in Treasury yields

Below are the movements in Treasury yields as of 7:15 AM EST on October 27:

  • The ten-year Treasury yield was trading at 2.452—a fall of ~0.09%.
  • The 30-year Treasury yield was trading at 2.958—a fall of ~0.09%.
  • The five-year Treasury yield was trading at 2.073—a rise of ~0.08%.
  • The two-year Treasury yield was trading at 1.627—a rise of ~0.52%.

The iShares 20+ Year Treasury Bond (TLT) fell 0.33%. The ProShares UltraPro Short 20+ Year Treasury (TTT) rose 0.6% and the ProShares UltraShort 20+ Year Treasury (TBT) rose 0.95% on October 26.

In the next part of this series, we’ll discuss how commodities performed in the early hours on October 27.


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