The U.S. Dollar Index reached a fresh 5-month low overnight, touching 100.617, its lowest point since July. The dollar is closing in on its 3rd consecutive weekly decline and is -5.31% since October’s close at 106.663. Dollar gains are +0.32% vs. GBP, +0.26% vs. AUD, and sub-0.10% gains vs. NZD and EUR.
The JPY has gained the most among G10 currencies in today’s trading, advancing 0.61% vs. the USD, +0.69% vs. EUR, and +0.90% vs. GBP. Comments from the Bank of Japan fueled speculation of a rate hike in by spring of next year.
U.S. Treasury yields are slightly higher in trading today but remain within recent ranges. The 10-year yield is +0.031% at 3.82%. Traders continue to price in a total 1.56% in Fed rate cuts next year (to 3.76% from the current 5.32%)
Markets have been generally quiet this week but low liquidity in thin holiday markets could create volatility in the ramp up to tomorrow’s trading year-end.
Gold is higher for the 3rd straight week, currently at $2,077/oz., and +2.07% during December. Gold’s highest yearly close was at $1,896/oz in 2020. This year gold has marked its highest point on record at $2,135.40/oz. and is closing in on a new yearly high close.
U.S. Weekly Jobless Claims for the week ending December 23rd were 218k, higher than the 210k estimate. Retail Inventories were reported -0.1% vs. a +0.2% estimate.
