Marketwatch North America

Daily Insights
October 11, 2023

In data released today PPI (Producer Prices) for September topped estimates, keeping the Fed’s concerns over inflation intact. The year-over-year Final Demand component was reported 2.2%, well above the 1.6% market forecast and was the third consecutive increase since June 30th. Even excluding volatile food and energy prices, the monthly PPI measure increased to 0.3%, above the 0.2% estimate.

U.S. Treasury yields have declined in the wake of the PPI data, especially in the far-dated tenors with the 20–30-year tenors trading down more than 0.09%.

The USD is mixed vs. its G10 counterpart currencies, +0.30% vs. NZD and +0.14% vs. AUD, while -0.30% vs. CHF and -0.20% vs. GBP. The dollar’s mixed results today are also seen in the U.S. Dollar Index which is -0.09% at 105.71, and setting up for the 7th consecutive daily decline.

USDMXN is -0.50% today, the pair’s 4th consecutive daily decline since peaking near 18.5000 on Oct 6th. The dollar’s rally vs. the peso was capped by long-term trendline resistance tracing back to May of 2020. Support for the pair is nearby at 17.7800 and lower at 17.5600 (50% retracement).

Spot gold prices are +0.62% today at $1,871/oz, continuing to rally after reaching a 9-month low of $1,809.50/oz only 4 days ago.

Market attention now turns to tomorrow’s CPI data in the latest update to consumer inflation trends.

Economic Calendar

AUD - RBA Assist Gov Kent Speaks
USD - Core PPI m/m
JPY - Prelim Machine Tool Orders y/y
USD - PPI m/m
USD - FOMC Member Waller Speaks
EUR - German Final CPI m/m
USD - FOMC Meeting Minutes
USD - FOMC Member Bowman Speaks
GBP - 10-y Bond Auction
EUR - German 30-y Bond Auction
CAD - Building Permits m/m
All - IMF Meetings
USD - 10-y Bond Auction
NZD - FPI m/m
GBP - RICS House Price Balance
JPY - Bank Lending y/y
JPY - Core Machinery Orders m/m
JPY - PPI y/y

Market Indicators

Currency Pairs
Pair High Low
usd/jpy 149.07 148.424
eur/usd 1.06285 1.05798
gbp/usd 1.23169 1.22665
aud/usd 0.64452 0.64009
usd/cad 1.36149 1.35711
eur/gbp 0.86425 0.8617
usd/mxn 17.9578 17.8161
Equities and Commodities
S&P 500 4370.91
NASDAQ 15194
DOW 33825.9
GOLD 1872.77
SILVER 22.02

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.