Global market sentiment: dollar keeps strengthening - Westpac

Analysts at Westpac offered a global market sentiment of last week's close in the US.

Key Quotes:

"A mixed session with only minor ructions. The US dollar rose, equities were slightly higher, and oil fell. Markets await the Fed and BOJ decisions this week.

Interest rates: US rates didn’t change much. US 10yr treasury yields fluctuated between 1.54% and 1.60%, closing at 1.57%.  2yr yields rose from 0.67% to 0.72%, closing at 0.70%. Market pricing of the Fed funds rate was unchanged, implying a 25% chance of a rate hike in September, a 55% chance by December, and 100% by Sep 2017.

Currencies:  The US dollar index rose to a four-month high. EUR fell from 1.1040 to 1.0956, and opens this morning around 1.0985. USD/JPY ground higher from 105.65 to 106.40. AUD fell from 0.7490 to 0.7444 and opens this morning higher around 0.7465. NZD ranged sideways between 0.6980 and 0.7017, opening this morning around 0.6995. AUD/NZD fell from 1.0700 to 1.0660."