Marketwatch North America

Daily Insights
May 28, 2024

The dollar is starting the holiday-shortened week lower with declines against all the major currencies. Primary weakness is vs. SEK (-1.30%) and NOK (-1.00%), and several sub-1% declines including -0.82% vs. KRW, -0.75% vs. NZD, -0.63% vs. AUD, -0.56% vs. ZAR, and -0.54% vs. CHF. The U.S. Dollar Index is -0.21% today and -0.70% over three consecutive days.

Data showing signs of economic cooling, including mixed signals on inflation, disappointing retail sales, and an all-time low in the University of Michigan’s gauge of consumer homebuying sentiment which dropped to 26, lower than the early 80’s when mortgage rates were near 18%.

The CFTC reported last week that asset managers have increased dollar short positions and are now net short for the first time in six weeks.

U.S. yields are lower in the near-term tenors and the 25-30yr tenors are unchanged. The 10-year yield is 4.452%. The decline in yields is driving investors into gold which is +0.44% today, its third consecutive daily gain.

Economic data this week includes today’s Consumer Confidence, Thursday’s Q1 GDP, and Friday’s Core PCE readings (the Fed’s favored gauge on consumer inflation).

Economic Calendar

CAD - IPPI m/m
AUD - Retail Sales m/m
CAD - RMPI m/m
USD - S&P/CS Composite-20 HPI y/y
USD - HPI m/m
CHF - SNB Chairman Jordan Speaks
USD - FOMC Member Bowman Speaks
USD - FOMC Member Mester Speaks
USD - CB Consumer Confidence
JPY - BOJ Core CPI y/y
USD - FOMC Member Cook Speaks
EUR - German WPI m/m
USD - FOMC Member Daly Speaks
GBP - CBI Realized Sales

Market Indicators

Currency Pairs
Pair High Low
usd/jpy 156.992 156.62
eur/usd 1.0889 1.08607
gbp/usd 1.27944 1.27624
aud/usd 0.66741 0.6654
usd/cad 1.36318 1.36145
eur/gbp 0.85176 0.85014
usd/mxn 16.6978 16.6328
Equities and Commodities
S&P 500 5315.19
NASDAQ 18865.6
DOW 39022.1
GOLD 2359.63
SILVER 32.02

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.