US Dollar Index
After rising for three consecutive trading weeks, the US Dollar Index pulled back last week amid the dented market sentiment. The US Dollar Index opened higher on Monday and traded above the opening prices in the early hours.
The US Dollar Index lost strength last week amid rising concerns about executing the tax cut plan proposed by the Trump Administration. Speculations in the market due to delaying the tax cut plans to 2019 made the US Dollar Index fall 0.6% last week. On Monday, the US Dollar Index is stable as Treasury yields regained strength at the end of last week.
At 4:40 AM EST on November 13, 2017, the US Dollar Index was trading at 94.57—a rise of 0.19%.
US Treasury regained strength at the end of last week and closed the week with gains. Increased uncertainty about tax reform plans pushed US Treasury yields higher on November 10. The market is looking forward to the release of US inflation data on November 15. The last inflation data will be released before the start of the FOMC’s December meeting.
Movement in Treasury yields
Below are the movements in Treasury yields as of 4:50 AM EST on November 13.
- The ten-year Treasury yield was trading at 2.382—a fall of ~0.73%.
- The 30-year Treasury yield was trading at 2.859—a fall of ~0.73%.
- The five-year Treasury yield was trading at 2.042—a fall of ~0.66%.
- The two-year Treasury yield was trading at 1.658—a fall of ~0.22%.
In the next part of this series, we’ll discuss how commodities performed in the early hours on November 13.