Marketwatch North America

Daily Insights
May 29, 2024

The dollar staged a minor rally yesterday which lifted the dollar index from 104.388 in early trading to 104.625 by end of day, or 0.23%. Dollar gains continued overnight, lifting the DXY by another 0.20%. The dollar is higher vs. the G10 except for a 0.08% decline vs. CHF. Standout dollar gains are +0.58% vs. SEK, +0.32% vs. AUD and +0.26% vs. CAD.

The dollar index is +3.48% for the year. Dollar YTD gains include a 10.41% advance vs. JPY, +7.21% vs. CHF, +3.84% vs. SEK, +1.79% vs. NOK, +1.27% vs. CAD, +0.93% vs. AUD, +0.88% vs. NZD and +0.22% vs. EUR. The dollar’s biggest yearly declines include a 5.04% drop vs. MXN and a -2.26% loss against the GBP.

The U.S. 10-year yield touched a 3-week high today, reaching 4.576% (last traded May 2nd). Yesterday’s government debt auction received mild interest, pressuring debt prices and lifting yields to more attractive levels. More debt auctions are scheduled today, and another poor reception could force yields higher. Yield gains are primarily in the long tenors with 25-yields leading +0.043%.

Gold is lower by 0.81% today, pressured by higher treasury yields.

USDJPY reached 157.40 today, the yen’s weakest level since the BoJ’s intervention on May 1st. The yen carry trade (buying USD yield, selling JPY yield) is proving too much of a temptation with traders earning a 2.31% return during May despite the intervention.

U.S. Mortgage applications declined 5.7% through the week ending May 24th, the biggest weekly decline since Feb 23rd.

Economic Calendar

USD - Richmond Manufacturing Index
AUD - MI Leading Index m/m
USD - FOMC Member Williams Speaks
NZD - ANZ Business Confidence
USD - Beige Book
USD - FOMC Member Bostic Speaks
AUD - CPI y/y
AUD - Construction Work Done q/q
JPY - Consumer Confidence
EUR - German GfK Consumer Climate
EUR - German Prelim CPI m/m
CHF - UBS Economic Expectations
EUR - M3 Money Supply y/y
EUR - Private Loans y/y
NZD - Building Consents m/m
AUD - RBA Assist Gov Hunter Speaks

Market Indicators

Currency Pairs
Pair High Low
usd/jpy 157.406 156.89
eur/usd 1.08587 1.08291
gbp/usd 1.27717 1.27354
aud/usd 0.66655 0.6625
usd/cad 1.36811 1.36461
eur/gbp 0.85166 0.84837
usd/mxn 16.8842 16.7414
Equities and Commodities
S&P 500 5269.79
NASDAQ 18714.5
DOW 38594.9
GOLD 2344.46
SILVER 31.88

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.