Marketwatch North America

Daily Insights
September 11, 2023

The dollar’s recent rally has landed it in the crosshairs of Chinese and Japanese central banks. Overnight the People’s Bank of China verbally warned speculators against ‘one-sided moves’ and the Bank of Japan’s Governor Ueda hinted at the possibility of ending its super-easy monetary policy of negative interest rates.

The USD has gained 7.39% vs. CNY since late January, lifting USD/CNY to 7.3498, the pair’s highest mark since December 2007. And the USD/JPY is +11.21% since January.

The USD is lower today against all majors following the comments from Asia, notably: -0.99% vs. AUD, -0.94% vs. JPY, -0.71% vs. NZD, -0.77% vs. CNH, and -0.51% vs. GBP. The U.S. Dollar Index is -0.43%, retreating from its highest weekly close (105.09) since the week ending February 24th.

USD/MXN is -0.40% today but is still trading between the high/low ranges from the last four days.

U.S. Treasury yields are higher in the far tenors and mixed in the 1-month to 3-year tenors.

Global equities are starting the week strong with most major indexes solidly in the green: S&P500 futures +0.57% and Nasdaq100 futures up 0.85%.

Economic data to watch for this week includes Wednesday’s CPI and Thursday’s PPI.

Economic Calendar

GBP - MPC Member Pill Speaks
EUR - EU Economic Forecasts
CNY - New Loans
CNY - M2 Money Supply y/y
GBP - MPC Member Mann Speaks
JPY - Prelim Machine Tool Orders y/y
EUR - Italian Industrial Production m/m
NZD - Visitor Arrivals m/m

Market Indicators

Currency Pairs
Pair High Low
usd/jpy 147.273 145.898
eur/usd 1.07592 1.07079
gbp/usd 1.25484 1.24302
aud/usd 0.64493 0.63734
usd/cad 1.36393 1.35607
eur/gbp 0.85887 0.85529
usd/mxn 17.5929 17.453
Equities and Commodities
S&P 500 4472.99
NASDAQ 15370.5
DOW 34590.8
GOLD 1922.62

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.