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US Dollar Index Is Stable, US Treasury Yields Are Strong

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Jul. 26 2018, Updated 9:37 a.m. ET

US Dollar Index

The US Dollar Index started this week on a stronger note by moving higher on Monday. However, the US Dollar Index lost strength and declined in the next two trading days. On July 26, the US Dollar Index opened slightly higher and was trading with mixed sentiment in the early hours.

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Market sentiment

The US Dollar Index lost strength after President Trump secured concessions from the European Union to avert the US-EU trade war. The news improved the market’s risk appetite and took the shine out of safe-haven assets like the US Dollar Index. The release of weaker-than-expected home sales data also weighed on the US Dollar Index. According to the Department of Commerce, US new home sales fell 5.3% in June—a bigger decline than the expected fall of 2.8%. The US Dollar Index is stable in the early hours on Thursday. The index is waiting for the release of initial jobless claims data. The data are scheduled to be released at 8:30 AM EST today.

At 5:30 AM EST on July 26, the US Dollar Index was trading at 94.28—a drop of 0.09%.

US Treasury yields

US Treasury yields moved higher on Wednesday. US bonds declined amid decreased concerns about the US-EU trade war. Treasury yields move opposite to bond movement. The Treasury yields are stable in the early hours on Thursday.

Below are the movements in Treasury yields as of 5:30 AM EST on July 26.

  • The ten-year Treasury yield was trading at 2.963—a gain of ~0.93%.
  • The 30-year Treasury yield was trading at 3.089—a gain of ~0.86%.
  • The five-year Treasury yield was trading at 2.843—a gain of ~0.81%.
  • The two-year Treasury yield was trading at 2.665—a gain of ~0.32%.

The iShares 20+ Year Treasury Bond (TLT) fell 0.16%. The ProShares UltraShort 20+ Year Treasury (TBT) and the ProShares UltraPro Short 20+ Year Treasury (TTT) rose 0.41% and 0.69%, respectively, on Wednesday.

Next, we’ll discuss how commodities performed in the early hours on July 26.

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