Marketwatch North America

Daily Insights
February 16, 2024

U.S. Producer Prices (price of goods as they leave their place of production) for January were higher in all categories, consistent with the direction of consumer prices (CPI) reported earlier in the week, confirming that inflation is heating up, particularly in the short-term.

PPI: M/M Final Demand +0.3% (+0.1% est.) ; M/M Core +0.5% (+0.1% est.) ; Y/Y Final Demand +0.9% (+0.6% est.) ; Y/Y Core +2.0% (+1.6% est.).

The U.S. dollar and treasury yields moved higher following the PPI data, with stubborn inflation seen keeping Fed rate cuts on hold. The dollar is higher vs. all G10 pairs, but volatility remains low with all gains sub-0.40%. Treasury yields are higher in all tenors, and the benchmark 10-year yield +0.077% at 4.309%.

U.S. Monthly Housing Starts declined 14.79% in January compared to December, the biggest 1-month drop since March 2020. Yesterday’s average 30-year mortgage rate was 7.24% and will move even higher today in lock step with surging treasury yields.

U.S. Equity indexes are pointing to a mixed open today, S&P500 -0.09% and Nasdaq +0.14%.

Next week’s economic calendar is light with the Presidents’ Day holiday on Monday. U.S. Mortgage Applications, FOMC Meeting Minutes, Existing Home Sales and Initial Jobless Claims are due out on Thursday.

Economic Calendar

USD - FOMC Member Bostic Speaks
CAD - Foreign Securities Purchases
CNY - Bank Holiday
CAD - Wholesale Sales m/m
JPY - Tertiary Industry Activity m/m
USD - Core PPI m/m
USD - PPI m/m
EUR - German WPI m/m
GBP - Retail Sales m/m
USD - Building Permits
USD - Housing Starts
EUR - French Final CPI m/m
USD - FOMC Member Barr Speaks
USD - Prelim UoM Consumer Sentiment
USD - Prelim UoM Inflation Expectations
USD - FOMC Member Daly Speaks
GBP - MPC Member Pill Speaks

Market Indicators

Currency Pairs
Pair High Low
usd/jpy 150.643 149.923
eur/usd 1.078 1.07319
gbp/usd 1.26061 1.25506
aud/usd 0.65296 0.64962
usd/cad 1.35076 1.34651
eur/gbp 0.85638 0.85362
usd/mxn 17.0975 17.0282
Equities and Commodities
S&P 500 5024.99
NASDAQ 17871.7
DOW 38644.5
GOLD 1997.67
SILVER 22.96

This document is for information purposes only and does not constitute any recommendation or solicitation to any person to enter into any transaction or adopt any trading strategy, nor does it constitute any prediction of likely future movements in exchange rates or prices or any representation that any such future movements will not exceed those shown on any illustration. All exchange rates and figures appearing are for illustrative purposes only. You are advised to make your own independent judgment with respect to any matter contained herein.