The dollar has been holding up despite a drop in Treasury yields
Wall Street indexes ended the session lower overnight. All three major stock indexes reversed earlier gains but remained range-bound. The Dow Jones Industrial Average fell 0.44%, the S&P 500 lost 0.18%, and the Nasdaq Composite dropped 0.09%. Benchmark Treasury yields dropped below 1.5% for the first time since May.
Today in Asia, stocks were higher, with indexes rising across the board but holding their recent trading range as investors focused on U.S. inflation data and the ECB meeting. Tokyo’s Nikkei 225 rose 0.34%, the Kospi in South Korea picked up 0.26%, In Hong Kong, the Hang Seng added 0.16%, while the Shanghai Composite index advanced 0.62%.
Meanwhile, currencies were mixed while trading in relatively tight ranges as traders preferred a more cautious approach ahead of crucial events. The dollar has been holding up despite a drop in Treasury yields below 1.5% for the first time since May. EURUSD failed to settle above the 1.2200 figure to retreat marginally. Earlier today, the pair slipped back below the 20-DMA to trade marginally lower on the day. The European Central Bank is expected to leave its current bond-buying program unchanged and publish updated euro area macroeconomic projections.
Meanwhile, oil prices were rejected from fresh two-year highs around $72.85 to finish just below the $72 figure on Wednesday. The Energy Information Administration reported on Wednesday that U.S. crude inventories fell by 5.2 million barrels for the week ended June 4. The EIA, however, also reported that gasoline supply climbed by 7 million barrels, while distillate stockpiles rose by 4.4 million barrels for the week. Following a downside correction earlier in the day, Brent crude regained bullish bias to regain the $72 figure during the European hours.
In other markets, gold prices keep sliding for the third consecutive session on Thursday as the greenback remains relatively steady these days. The precious metal failed to break above the $1,900 barrier earlier in the week and was last seen flirting with the ascending 20-DMA, a break below which would pave the way towards the $1,870 area.