Market wrap: US dollar index rose slightly - Westpac

Analysts at Westpac offered a Market Wrap.

"Global market sentiment: Equities rose in Europe and the US, the S&P500 up 0.5% to a fresh record high. Most commodities also rose, oil up over 4%. US interest rates followed suit, helping the US dollar.

Interest rates: US 10yr treasury yields rose from 1.50% to 1.57% while the 2yr yield rose from 0.68% to 0.75%. Market pricing of the Fed funds rate firmed, implying around a 25% chance of a rate hike in September, a 60% chance by December, and 100% by Nov 2017.

Currencies:  The US dollar index rose slightly. EUR fell from yesterday’s minor peak of 1.1192 to 1.1137. USD/JPY rose from 101.20 to 102.05, the safe-haven yen underperforming. AUD was stuck in a narrow sideways range between 0.7700 and 0.7724. NZD continued to drift lower to 0.7205, which is where it was just before the RBNZ decision yesterday morning. AUD/NZD rose from 1.0600 to 1.0685."