US Dollar Index Pulled Back after US-North Korea Summit


Jun. 12 2018, Updated 9:45 a.m. ET

US Dollar Index

After a brief pullback last week, the US Dollar Index closed higher on Monday and started this week on a stronger note. Maintaining the strength, the US Dollar Index opened higher on Tuesday and lost strength as the day progressed.

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Market sentiment

The US Dollar Index is strong in the early hours amid optimism about the US-North Korea summit, which focused on denuclearization. The first round of talks ended on a positive note followed by an agreement between the two nations. President Trump said that the agreement was comprehensive and important. No other details were disclosed.

The talks will continue in the future with the goal of denuclearizing the Korean Peninsula and establishing peace. The US Dollar Index reversed its course and pulled back after the US-North Korea summit. The market is looking forward to the release of inflation data. The data are scheduled to be released at 8:30 AM EST today.

At 6:05 AM EST on June 12, the US Dollar Index was trading at 93.52—a drop of 0.06%.

US Treasury yields

US Treasury yields moved higher on Monday amid strong demand for an auction of three-year notes and ten-year notes on Monday. US Treasury yields are higher in the early hours on Tuesday. The Fed is expected to raise the interest rates by a quarter point on Wednesday.

Below are the movements in Treasury yields as of 6:15 AM EST on June 12.

  • The ten-year Treasury yield was trading at 2.963—a gain of ~0.19%.
  • The 30-year Treasury yield was trading at 3.101—a gain of ~0.2%.
  • The five-year Treasury yield was trading at 2.806—a gain of ~0.14%.
  • The two-year Treasury yield was trading at 2.533—a gain of ~0.18%.

The iShares 20+ Year Treasury Bond (TLT) fell 0.18%, while the ProShares UltraShort 20+ Year Treasury (TBT) and the ProShares UltraPro Short 20+ Year Treasury (TTT) gained 0.46% and 0.61%, respectively, on Monday.

Next, we’ll discuss how commodities performed in the early hours on June 12.


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