Today, the US stock futures are down on the back of a surge in US Treasury yields. At the same time, the US dollar even managed to gain momentum but later declined against the major currencies, except the Canadian dollar. After having reached a historic high last Sunday, bitcoin is sliding down.
The Dow Jones fell by 0.64% due to an increase in US Treasury yields, while the NASDAQ Composite index lost about 1.49%. The S&P 500 index sank by 0.85%.
The US government bond yields have reached the highest levels for the first time since February 2020. The US dollar is taking advantage of the situation, trying to steam up. Yet, at the same time, it puts pressure on the stocks of many companies, which have to raise their value for holders of foreign currency.
This afternoon, the greenback advanced against its six major rivals, trading near the 90.5 level. The US Treasury yields have hit one-year highs, which is bullish for the US dollar. Demand for riskier assets is declining and the US currency is sure to benefit from it.
At the moment of preparing this material, the US dollar dipped by 0.09%. As a result, the US dollar index was trading at 90.27.
Meanwhile, USD/CAD is moving higher. The greenback is trading 0.09% higher at 1.2634 against the loonie.
Bitcoin has lost over 5% today, settling at $52,703.
Last Sunday, February 21, the top cryptocurrency hit another all-time high, surpassing $58K.
BTC’s stellar rally began on December 16, breaking the $20K mark. The value of the digital coin has increased almost three times since then.
As for the macroeconomic calendar, the start of the week will be relatively calm. Federal Reserve Board Governor Michelle Bowman is scheduled to speak today, taking the job of warm-up act for Chairman Jerome Powell, who is going to testify in Congress on Tuesday and Wednesday. Powell's two-days testimony will be one of the major events of the week.