Marketwatch North America

Daily Insights
March 6, 2024

The dollar is broadly lower today, losing ground against the other major currencies except vs. the TWD (+0.03%) and CHF (+0.08%). Primary dollar losses are -0.60% vs. AUD, -0.53% vs. MXN, -0.44% vs. NZD, -0.43% vs. SEK & JPY, -0.25% vs. EUR -0.21% vs. CAD, and -0.12%vs. GBP.

The dollar index is -0.27% (its biggest move in weeks) and testing support at 103.50.

USD/MXN is gaining downside momentum after Monday’s close below 17.000. Next support at 16.8000 is quickly approaching, followed by 16.6200.

Fed Chairman Powell began his testimony to Congress, beginning with the House panel today. Key points from Powell’s prepared statement:

  • We believe that our policy rate is likely at its peak for this tightening cycle.
  • If the economy evolves broadly as expected, it will likely be appropriate to begin dialing back policy restraint at some point this year.
  • The Committee does not expect that it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent.

U.S. Treasury yields are lower in all tenors (in sync with the dollar), with the mid-tenors seeing the biggest declines.

The Bank of Canada will announce its rate decision today and is expected to leave unchanged at 5%.

Global equity indexes are universally higher, the Nasdaq 100 leading the way with a gain of 0.924%.

Gold is trading at a record high today at $2,142.30, +0.75%.

Economic Calendar

USD - ADP Non-Farm Employment Change
AUD - GDP q/q
CAD - Labor Productivity q/q
EUR - German Trade Balance
CAD - BOC Rate Statement
GBP - Construction PMI
CAD - Overnight Rate
EUR - Retail Sales m/m
GBP - Annual Budget Release
CAD - Ivey PMI
USD - Fed Chair Powell Testifies
USD - JOLTS Job Openings
USD - Final Wholesale Inventories m/m
CAD - BOC Press Conference
USD - Crude Oil Inventories
USD - FOMC Member Daly Speaks
USD - Beige Book
NZD - Manufacturing Sales q/q
JPY - Average Cash Earnings y/y

Market Indicators

Currency Pairs
Pair High Low
usd/jpy 150.084 149.282
eur/usd 1.08877 1.0842
gbp/usd 1.27314 1.26899
aud/usd 0.65449 0.64924
usd/cad 1.35999 1.35612
eur/gbp 0.8556 0.85412
usd/mxn 16.9508 16.8602
Equities and Commodities
S&P 500 5112.01
NASDAQ 18069.9
DOW 38746.4
GOLD 2137.92
SILVER 23.84

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.