Dollar Mixed as North America Opens; Yen Firms While Stocks Futures Rise on Early-Close Friday
The US dollar opened the North American session mixed, strengthening against the euro and sterling but slipping versus the yen, as US equity futures edged higher and Treasury yields nudged lower ahead of an early market close that could thin liquidity and amplify intraday FX swings.
Risk Tone Supportive, but Yen Outperforms
The mood across risk assets was constructive after futures trading resumed following earlier technical issues at CME Group. Major US indices are set to extend a four-day winning streak, with gains across the Dow, S&P 500, and Nasdaq suggesting steady risk appetite. Even so, marginally lower US yields and lighter volumes appear to be favoring the yen at the margins, pressuring USD/JPY in early dealings.
Key Points
- USD mixed: stronger vs EUR and GBP; weaker vs JPY.
- US stock markets close at 1:00 p.m. ET; bond markets at 2:00 p.m. ET.
- CME Group reported earlier technical problems; futures trading now open and showing gains.
- Four-day winning streak in US equities set to continue: Dow +76 pts, S&P 500 +9.39 pts, Nasdaq +80 pts (futures).
- US Treasury yields marginally lower on the curve, with the 10-year near 3.996%.
FX Market Snapshot
– EUR/USD: Dollar buying has capped rebounds, with traders eyeing intraday resistance near recent session highs. A topside break would likely require a firmer rise in US yields or broader risk-off tone.
– USD/JPY: The pair eased as Treasury yields edged down, underscoring sensitivity to rate differentials. Thin liquidity into the early US close can increase volatility around support zones.
– GBP/USD: Sterling softened against the dollar, with attention on prior-day lows as near-term support. Momentum may hinge on whether US data headlines or yield moves spark a late-session push.
Equities and Yields
Futures at the Open
- Dow Jones Industrial Average: +76 points
- S&P 500: +9.39 points
- Nasdaq 100: +80 points
US Treasury Yields
- 2-year: 3.472% (-0.8 bps)
- 5-year: 3.568% (-0.5 bps)
- 10-year: 3.996% (-0.2 bps)
- 30-year: 4.646% (+0.2 bps)
Early Close Could Shape Afternoon Liquidity
With the NYSE and Nasdaq set to close at 1:00 p.m. ET and SIFMA-recommended close for bonds at 2:00 p.m. ET, liquidity typically fades earlier than usual. That can compress ranges—or exacerbate breakouts—depending on headline flow and positioning into the weekend. After-hours sessions may also end earlier than usual, depending on brokers.
What Traders Are Watching
– Whether US yields re-accelerate lower, reinforcing yen strength and pressuring USD/JPY.
– If equity momentum persists into the shortened session, supporting risk-sensitive FX pairs.
– Intraday levels in EUR/USD and GBP/USD around prior session highs/lows for signs of breakouts in thinner conditions.
FAQ
When do US markets close today?
US stock markets (NYSE and Nasdaq) close at 1:00 p.m. ET. The bond market follows a SIFMA-recommended close at 2:00 p.m. ET. Some desks may shut even earlier.
Why is the US dollar mixed this morning?
The dollar is stronger versus the euro and sterling but weaker against the yen as US Treasury yields edge lower and traders position into an early-close session with thinner liquidity.
How do early closes affect forex trading?
Liquidity typically declines earlier in the day, which can reduce depth and widen spreads. Price moves may become choppier, and intraday levels (prior highs/lows) can break more easily—both risk and opportunity for FX traders.
What happened at CME Group?
There were technical problems reported earlier, but futures trading is now open and showing gains across major US indices, according to market indications reviewed by BPayNews.
Which levels matter for EUR/USD, USD/JPY, and GBP/USD?
With liquidity thinning, traders are focusing on intraday support and resistance—often the prior session’s highs and lows and nearby swing points. A clear break and hold beyond those areas tends to set the tone into the close.
