Dollar Continues To Slide

Treasuries ended the week with a modest decline.

However, Tuesday and Thursday’s sharp rallies meant treasuries closed well above
last week’s multi-month lows. 10yr T-Note yields hit 4.793% on Monday but closed
at 4.674% on Friday. Traders opinions shifted significantly on how many more
interest rate rises are likely in the coming months this week and the impact was
felt across the markets.

The US Dollar Index closed lower for the fifth consecutive day. The large drop
in the Dollar was attributable to the shift in traders perception of the
interest rate environment.

Energy prices declined today but were higher for the week. OPEC lowered global
demand forecasts, citing large US supplies as its main reason. Crude Oil closed
at $62.77 after opening on Monday at $60.05.

Gold rose modestly this week considering the size of the decline in the US
Dollar. On the other hand, Silver hit a new contract high. Copper surged 4.52%,
closing at a new all-time high.

In the softs, Lumber closed limit-down after NAFTA ruled against the US policy
of imposing duties on Canadian lumber. Coffee, Sugar and Cotton also fell.
Orange Juice was the only contract to rise.

The grains were mixed, Wheat rose, Corn fell and Soybeans were flat.

In the livestock group, Lean Hogs was the only riser.

Economic News

Industrial Production:

Consensus 0.9% Actual 0.7%

Capacity Utilization:

Consensus 81.5% Actual 81.2%

University of Michigan Consumer Sentiment Index:

Consensus 88.0 Actual 86.7

Ashton Dorkins

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