US Dollar Index and Treasury Yields in the Morning Session
US Dollar Index
After declining for five consecutive trading weeks, the US Dollar Index regained stability last week but closed the week with a loss at three-year low price levels. The US Dollar Index started this week on a stronger note but lost upward momentum as the week progressed. On Wednesday, the US Dollar Index opened the day lower and traded with weakness at fresh three-year low price levels in the early hours.
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The market sentiment on the US Dollar Index improved last week amid the end of the US government shutdown and bullish comments by President Trump on the US dollar. However, the market resumed its weakness this week as the Fed started its two-day policy meeting on Tuesday. The market is looking forward to the release of the FOMC’s statement to get clues about the pace of the interest rate hike in 2018. The FOMC’s statement is scheduled to release at 2:00 PM EST today.
At 5:20 AM EST on January 31, the US Dollar Index was trading at 88.94—a drop of 0.24%.
US Treasury yields
US Treasury yields consolidated last week following a strong performance for three weeks. The ten-year yield surged to four-year high price levels this week amid improved consumer confidence. According to the Conference Board, U.S. CB Consumer Confidence surged to 125.4 in January—higher than the forecast of 123.1.
Below are the movements in Treasury yields as of 5:25 AM EST on January 31.
- The ten-year Treasury yield was trading at 2.701—a fall of ~0.87%.
- The 30-year Treasury yield was trading at 2.955—a fall of ~0.84%.
- The five-year Treasury yield was trading at 2.487—a fall of ~0.8%.
- The two-year Treasury yield was trading at 2.108—a fall of ~0.73%.
The iShares 20+ Year Treasury Bond (TLT) fell 0.59%. The ProShares UltraPro Short 20+ Year Treasury (TTT) and the ProShares UltraShort 20+ Year Treasury (TBT) rose 1.8% and 1.2%, respectively, on January 30.
Bitcoin declined for three consecutive trading weeks amid the dented market sentiment. Investors’ increased caution amid the focus on regulatory systems in Asia to control cryptocurrency trading weighed on Bitcoin last week. This week, in addition to weak sentiment, Facebook banning cryptocurrency advertisements added weakness to Bitcoin. At 5:30 AM EST, the Bitcoin-US Dollar contract was trading at $10,130.0—a fall of 7.0%.
Next, we’ll discuss how commodities performed in the early hours on January 31.