The dollar index is -0.20% today and reached an overnight low of 103.178, finally breaking through September’s low of 103.272. Dollar daily losses include declines against all G10 pairs and most other major currencies. The dollar’s decline accelerated after last Tuesday’s surprise CPI data which showed consumer inflation reaching a 16-month low. The dollar’s results since the CPI data:
-2.16% vs. NOK
-1.87% vs. JPY
-1.81% vs. SEK
-1.36% vs. MXN
-1.07% vs. NZD
-1.03% vs. AUD
-0.71% vs. CHF
-0.67% vs. EUR
-0.38% vs. GBP
U.S. Treasury yields have moved lower in unison with the dollar. The 10-year yield is 4.409% today after starting the month at 4.897%. Fed Funds Futures currently imply a greater than 50% probability of a series of Fed rate cuts beginning with the FOMC’s June 2024 rate policy meeting.
Gold is +1.12% at $1,999.39/oz, continuing the rally from its $1,931.55 low earlier in the month and approaching October’s $2,009.29/oz high.
Canadian CPI date released today was in line with survey estimates: +0.1% MoM (+0.1% est.), and +3.1% YoY (+3.1% est.). USD/CAD is little unchanged, -0.17% in trading today.
