Marketwatch North America

Daily Insights
January 24, 2024

The dollar sold off overnight, leading to a 0.63% decline in the U.S. Dollar Index, now trading at 102.98. Short-term support near 103.00 has prevented further dollar weakness but looks vulnerable to a break and test of lower support at 102.75. The dollar is lower vs. all G-10 currencies, notable declines: -0.96% vs. JPY, -0.95% vs. CHF, -0.63% vs. NZD, and -0.56% vs. EUR & GBP.

JPY is higher following a surge in Japan bond yields as traders adjust positions on expectations of a Bank of Japan rate hike. And today’s GBP strength was sparked by better-than-expected preliminary PMI data for January.

U.S. Treasury yields are lower in all tenors, the biggest declines in the 5-10 year tenors, 10-year -0.04%.

The Bank of Canada will announce its interest rate policy today. While no change is expected to the current 5% target rate, the policy statement will be closely read for hints of a more hawkish tone.

The U.S. economic calendar is light today but has a full schedule of data releases tomorrow: Annualized GDP, Core PCE Price Index (a Fed favorite), Durable Goods, Weekly Jobless Claims (following last week’s 16-month low), and New Home Sales.

Trump won yesterday’s New Hampshire primary with 54.5% of the GOP’s primary votes, and set the tone for upcoming primaries by vowing to ‘get even’ with Nikki Haley who received 43.2% of the total votes and intends to stay in the race.

Economic Calendar

CAD - BOC Monetary Policy Report
JPY - Flash Manufacturing PMI
CAD - BOC Rate Statement
NZD - Credit Card Spending y/y
CAD - Overnight Rate
USD - Flash Manufacturing PMI
EUR - French Flash Manufacturing PMI
EUR - French Flash Services PMI
USD - Flash Services PMI
CAD - BOC Press Conference
EUR - German Flash Manufacturing PMI
EUR - German Flash Services PMI
USD - Crude Oil Inventories
EUR - Flash Manufacturing PMI
EUR - Flash Services PMI
GBP - Flash Manufacturing PMI
GBP - Flash Services PMI
GBP - CBI Industrial Order Expectations

Market Indicators

Currency Pairs
Pair High Low
usd/jpy 148.26 146.722
eur/usd 1.09272 1.08513
gbp/usd 1.27733 1.26857
aud/usd 0.66191 0.65658
usd/cad 1.34775 1.34307
eur/gbp 0.85613 0.85357
usd/mxn 17.3181 17.1736
Equities and Commodities
S&P 500 4896.18
NASDAQ 17567.3
DOW 38069
GOLD 2034.24
SILVER 22.92

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.