US Dollar Index
The US Dollar Index fell for five consecutive trading weeks and reached three-year low price levels. Following the weakness, the US Dollar Index opened this week on a mixed note and regained strength on Tuesday. On January 23, the US Dollar Index opened the day on a stable note and traded above opening prices in the early hours.
Speculations about US economic growth stability and the release of strong jobs data made the market sentiment mixed this week. The US Dollar Index declined on Monday amid concerns about the US government shutdown. However, the US Dollar Index recovered on Tuesday. The sentiment improved following the US government shutdown being lifted until February 8. It’s short-term measure by US senators. The market is looking forward to the release of January’s U.S. Richmond Manufacturing Index data at 10:00 AM EST today.
At 5:35 AM EST on January 23, the US Dollar Index was trading at 90.45—a gain of 0.06%.
US Treasury yields
Following a three-week gaining streak, US Treasury yields started this week on a mixed note. US bond prices moved higher and weighed on Treasury yields after US senators ended the US government shutdown on Monday. Treasury yields move opposite to bond price movements.
Below are the movements in Treasury yields as of 5:40 AM EST on January 23.
- The ten-year Treasury yield was trading at 2.630—a fall of ~1.3%.
- The 30-year Treasury yield was trading at 2.898—a fall of ~1%.
- The five-year Treasury yield was trading at 2.431—a fall of ~1.2%.
- The two-year Treasury yield was trading at 2.057—a fall of ~0.78%.
The iShares 20+ Year Treasury Bond (TLT) rose 0.1%. The ProShares UltraPro Short 20+ Year Treasury (TTT) and the ProShares UltraShort 20+ Year Treasury (TBT) rose 0.3% and 0.25%, respectively, on January 22.
Bitcoin declined for two weeks and started this week on a weaker note. Concerns about Asian markets’ plans to increase regulations on cryptocurrency trading weighed on Bitcoin in the last two weeks. On Tuesday, Bitcoin declined due to a new regulatory measure in South Korea. It demands that cryptocurrency traders identify themselves to continue being involved in cryptocurrency trade. At 5:50 AM EST, the Bitcoin-US Dollar contract was trading at $10,352.0—a drop of 11.9%.
Next, we’ll discuss how commodities performed in the early hours on January 23.