Marketwatch North America

Daily Insights
December 28, 2023

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.

Economic Calendar

USD - Unemployment Claims
USD - Goods Trade Balance
USD - Prelim Wholesale Inventories m/m
USD - Pending Home Sales m/m
USD - Natural Gas Storage
USD - Crude Oil Inventories

Market Indicators

Currency Pairs
Pair High Low
usd/jpy 141.675 140.652
eur/usd 0.90315 0.89769
gbp/usd 0.78507 0.77953
aud/usd 1.46533 1.45529
usd/cad 1.32322 1.31874
usd/mxn 16.9335 16.8593
Equities and Commodities
S&P 500 4794.12
NASDAQ 16949
DOW 37760.6
GOLD 2078.05
SILVER 24.25

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.