The dollar index is -0.17% today and -0.41% over two days, consolidating following Fri-Mon gain of 1.42%. Resistance at 104.50 is the hurdle for additional dollar gains, and support at 103.75 will likely attract bids from dollar bulls. The dollar’s performance overnight against the G10 ranges between a 0.17% gain vs. CHF and a 0.43% drop against the SEK. Other dollar losses: -0.30% vs. GBP, -0.17% vs. EUR & CAD.
U.S. Treasuries also had a quiet overnight session, the 6-month and 1-year tenors the standouts with only +0.021% net moves.
In an interview on CNBC this morning Minneapolis Fed President Kashkari reiterated the Fed’s stance on inflation and timing of rate cuts for this year: ‘Sitting here today, I would say, two or three cuts would seem to be appropriate for me right now’; ‘We just need to look at the actual inflation data to guide us’; ‘So far, the data has been resoundingly positive. I hope it continues. And then the question will simply be, at what pace do we then start to adjust rates back down?’; and ‘compelling arguments to suggest we could be in a longer, higher rate environment going forward.’
Mortgage Applications for the period ending February 2nd were +3.7%, a significant reversal from the previous -7.2%.
Tomorrow’s Weekly Jobless Claims is the only remaining key event on the U.S. economic calendar for the week, estimated 220k compared to the previous week’s 224k.
Oil is +0.60% today at $73.70/barrel. Gold is +0.08% and silver -0.34%.
