The dollar has started the week mixed between gain and losses vs. the G10 in narrow ranges. The dollar index is +0.14%, mid-range for the last 8 days.
This week’s economic calendar features speeches and Q&A appearances by several voting members of the FOMC. Minneapolis Fed President Neel Kashkari was interviewed on CNBC this morning and answered questions about the timing and size Fed’s 50bps cut last week. Kashkari explained that the cut was a preemptive move to support the strong but cooling labor market, and not intended as a signal of rapidly declining fundamentals.
The table below shows major global central bank activity this year sorted by date. The U.S. Fed’s late Q3 oversized cut does raise questions.
| Global Central Bank Activity 2024 | |||||
| Central Bank Region | Date | Action | Amount | From | To |
| Switzerland | 3/21/2024 | Cut | 25bps | 1.75% | 1.50% |
| Mexico | 3/21/2024 | Cut | 25bps | 11.25% | 11.00% |
| Sweden | 5/8/2024 | Cut | 25bps | 4.00% | 3.75% |
| Canada | 6/5/2024 | Cut | 25bps | 5.00% | 4.75% |
| Eurozone | 6/6/2024 | Cut | 25bps | 4.00% | 3.75% |
| Switzerland | 6/20/2024 | Cut | 25bps | 1.50% | 1.25% |
| Canada | 7/24/2024 | Cut | 25bps | 4.75% | 4.50% |
| Japan | 7/31/2024 | Hike | 15bps | 0.10% | 0.25% |
| United Kingdom | 8/1/2024 | Cut | 25bps | 5.25% | 5.00% |
| Mexico | 8/8/2024 | Cut | 25bps | 11.00% | 10.75% |
| New Zealand | 8/14/2024 | Cut | 25bps | 5.50% | 5.25% |
| Sweden | 8/20/2024 | Cut | 25bps | 3.75% | 3.50% |
| Canada | 9/4/2024 | Cut | 25bps | 4.50% | 4.25% |
| Eurozone | 9/12/2024 | Cut | 25bps | 3.75% | 3.50% |
| United States | 9/18/2024 | Cut | 50bps | 5.50% | 5.00% |
| China | 9/22/2024 | Cut | 10bps | 1.95% | 1.85% |
U.S. Treasury yields are higher for the 5th consecutive day. The 7-year tenor is leading gains +0.041%, and the benchmark 10-year is +0.04%, now at 3.783%.
Gold continues to move deeper into record territory reaching $2,635.29 today, +0.37% from Friday’s close.
