Marketwatch North America

Daily Insights
February 9, 2024

Today the USD/JPY reached its highest level since Nov 27th and is +5.61% since the beginning of the year. Last year’s record high of 151.92 is now only 1.68% from the pair’s current level.

The U.S. Dollar Index continues to trade within its recent 104.00/104.50 range, currently at 104.15 (-0.05% today). Support at 104.00 has been tested and held three consecutive days, confirming buying interest and expectation for dollar gains.

The dollar’s biggest decline is -0.74% vs. NZD, driven by expectations that New Zealand’s RBNZ will resume rate hikes this month due to continued rising inflation. A 25bps hike is priced in for February and a similar hike expected in April. The two hikes would lift the cash rate to 6%.

Other standout daily dollar losses: -0.48% vs. NOK & -0.46% vs. AUD. Low and declining volatility in the broader FX market is keeping daily moves to a minimum: -0.14% vs. GBP, -0.13% vs. CAD and -0.06% vs. EUR.

U.S. Treasurys are higher in most tenors in minor net moves. December CPI was revised  to +0.2%, down from +0.3% initially reported. Attention now turns to January CPI data which is set to be released next Tuesday.

Canadian payrolls increased by 37.3k, more than double the 15.0k estimate. And Canada’s Unemployment rate dropped to 5.7% from the previous 5.8%.

Economic Calendar

CAD - Employment Change
CAD - Unemployment Rate
CNY - New Loans
CNY - M2 Money Supply y/y
EUR - German Final CPI m/m
EUR - Italian Industrial Production m/m
EUR - German Buba President Nagel Speaks

Market Indicators

Currency Pairs
Pair High Low
usd/jpy 149.575 149.002
eur/usd 1.0795 1.0762
gbp/usd 1.26429 1.25991
aud/usd 0.6534 0.64872
usd/cad 1.34658 1.34125
eur/gbp 0.85472 0.85324
usd/mxn 17.173 17.0771
Equities and Commodities
S&P 500 5011.47
NASDAQ 17857.1
DOW 38766.7
GOLD 2028.18
SILVER 22.55

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.