Market wrap: Fed's mantra lifts dollar bull's spirits - Westpac

Analysts at Westpac offered a market wrap of last week's closing sessions.

Key Quotes:

"Global market sentiment: US interest rates and the US dollar rose amid little fresh news flow, rather taking a lead from last week’s hawkish comments from FOMC members Dudley and Williams.

Interest rates: US 10yr treasury yields rose from 1.53% to 1.59%, while the 2yr rose from 0.71% to 0.75%. Market pricing of the Fed funds rate firmed, implying around a 20% chance of a rate hike in September, a 60% chance by December, and 100% by July 2017. Among the Fedspeak on tap last week, markets appeared to pay more attention to the hawkish tones from Dudley and Williams. The latter saidon Friday that the Fed should remove the punchbowl of low rates, and saw negative rate policies as costly.

Currencies:  The US dollar index gained 0.4%. EUR fell from 1.1350 to 1.1305. USD/JPY ranged sideways between 100.00 and 100.40, but has opened higher this morning at 100.80.. AUD fell from 0.7645 to 0.7599 early London and then ranged sideways. NZD ranged between 0.7250 and 0.7282. AUD fell from 1.0520 to 1.0475 – a two-week low."