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US Dollar Index Is Stable before Powell’s Speech

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May. 25 2018, Published 8:31 a.m. ET

US Dollar Index

After surging to six-month high price levels on Wednesday, the US Dollar Index pulled back on Thursday amid weak market sentiment. However, the US Dollar Index opened May 25 on a stable note. The index was trading above opening prices in the early hours.

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Market sentiment

The market sentiment was weak on Thursday following the Fed’s dovish tone in the meeting minutes released on Wednesday. The US Dollar Index regained strength in the early hours on May 25. North Korea provided a restrained response to President Trump’s decision to cancel the meeting with Kim Jong-un. The market is looking forward to Fed chair Powell’s speech. The speech is scheduled to start at 9:20 AM EST. The market is also waiting for the release of durable goods orders data scheduled for 8:30 AM EST. FOMC members Bostic and Kaplan are scheduled to give speeches at 11:45 AM EST today.

At 6:00 AM EST on May 25, the US Dollar Index was trading at 93.88—a gain of 0.13%.

US Treasury yields

After declining for two days, US Treasury yields started Friday on a mixed note and traded below opening prices in the early hours. The Treasury yields are maintaining mixed sentiment amid geopolitical tension between the US and North Korea. Below are the movements in Treasury yields as of 6:05 AM EST on May 25.

  • The ten-year Treasury yield was trading at 2.968—a fall of ~0.44%.
  • The 30-year Treasury yield was trading at 3.119—a fall of ~0.4%.
  • The five-year Treasury yield was trading at 2.806—a fall of ~0.37%.
  • The two-year Treasury yield was trading at 2.508—a fall of ~0.16%.

The iShares 20+ Year Treasury Bond (TLT) gained 0.8%, while the ProShares UltraShort 20+ Year Treasury (TBT) and the ProShares UltraPro Short 20+ Year Treasury (TTT) declined 1.6% and 2.2%, respectively, on Thursday.

Next, we’ll discuss how commodities performed in the early hours on May 25.

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