The dollar index locked in its 10th consecutive weekly gain on Friday, closing +0.25% at 105.583 for the week and is +5.67% over since the July 14th close. The dollar’s biggest gains since mid-July: +7.94% vs. SEK, +6.59% vs. SEK, +6.51% vs. GBP, +6.45% vs. JPY, +6.44% vs. NZD, +5.81% vs. AUD, +5.12% vs. EUR, and +4.92% vs. CHF. The dollar’s narrowest gains are +1.98% vs. vs. CAD and +2.61% vs. MXN over that same period.
U.S. Treasury yields continue their trend higher. The 10-year yield has cleared the 4.25% hurdle and, at 4.52%, is now within the 4.50%-5.20% range from 2006-2007. The 30-year yield has seen the day’s widest gain, +0.101%, more than a 10 basis-point gain.
USD/MXN found strong buying interest at 17.1000 support last Friday. Next resistance for the pair is near 17.4500. The Bank of Mexico announces is Overnight Rate policy on Thursday with no change to the current 11.25% expected. The text of the policy announcement and comments from bank officials will be closely watched for signals about forward-looking rate policy.
Major equity indexes are universally lower, the brunt of losses centered in European equities. U.S. indexes are signaling a roughly 0.50% loss at today’s open.
Economic data for North America this week U.S. New Home Sales and Consumer Confidence on Tuesday; U.S. Durable Goods on Wednesday; Fed Chairman Powell Speech, weekly U.S. Jobless Claims; U.S. Annualized GDP, and Mexico’s Overnight Rate on Thursday; and Personal Income, Personal Spending, and Canada’s GDP on Friday.