US Dollar Index
The US Dollar Index pulled back on Wednesday and broke the three-day gaining streak. Maintaining the weakness, the US Dollar Index opened weaker on Thursday and was trading at four-week low price levels in the early hours.
The US Dollar Index rose on Wednesday as a knee-jerk reaction to the Fed’s interest rate hike. However, the index lost steam and ended the day lower. The Fed’s hawkish tone sent the dollar higher. The spike was used as an opportunity for profit-booking. The market was cautious ahead of the ECB’s (European Central Bank) interest rate decision and press conference scheduled for June 14. The market expects the ECB to give clues about whether it will let its quantitative easing program expire in September. The market is looking forward to the release of May’s retail sales data. The data are scheduled to be released at 8:30 AM EST today.
At 5:35 AM EST on June 14, the US Dollar Index was trading at 93.30—a drop of 0.44%.
US Treasury yields
US bond prices declined on Wednesday following the Fed’s interest rate hike. Treasury yields rose because yields move opposite to bond movements. In the early hours on Thursday, US Treasury yields are trading lower and awaiting the ECB’s press conference.
Below are the movements in Treasury yields as of 5:40 AM EST on June 14.
- The ten-year Treasury yield was trading at 2.952—a drop of ~0.92%.
- The 30-year Treasury yield was trading at 3.071—a drop of ~0.99%.
- The five-year Treasury yield was trading at 2.820—a drop of ~0.72%.
- The two-year Treasury yield was trading at 2.561—a drop of ~0.8%.
The iShares 20+ Year Treasury Bond (TLT) fell 0.05%, while the ProShares UltraShort 20+ Year Treasury (TBT) and the ProShares UltraPro Short 20+ Year Treasury (TTT) gained 0.08% and 0.25%, respectively, on Wednesday.
Next, we’ll discuss how commodities performed in the early hours on June 14.