Marketwatch North America

Daily Insights
August 11, 2023

Producer Price data (prices received by domestic producers) for July was higher than forecast in 5 of the 6 PPI categories: monthly Final Demand monthly +0.3% vs. +0.2%; Ex Food and Energy monthly +0.3% vs. +0.2% est.; Final Demand year-over-year +0.8% vs. +0.7% est.; and Ex Food and Energy YoY +2.4% vs. +2.3% est. And all PPI categories for July were higher than June’s report with the YoY Final Demand of 0.8% far outpacing June’s 0.1% increase.

Not great news for the Fed and counter to the ‘soft landing’ narrative. Equities have dropped following the PPI data, with an increased likelihood of further rate increases creating headwinds for businesses and pressuring bank portfolios. Treasuries have reacted to PPI as well, with prices lower in all tenors leading to yield gains, particularly in the 3- 6-year periods.

The U.S. dollar is stronger today as it follows higher yields. The widest gains are +1.31% vs. NOK, +1.17% vs. SEK, and +0.53% vs. NZD. The U.S. Dollar Index is +0.24% at 102.774, approaching July’s 102.843 high.

Economic Calendar

USD - Core PPI m/m
USD - Prelim UoM Inflation Expectations
USD - Prelim UoM Consumer Sentiment

Market Indicators

Currency Pairs
Pair High Low
usd/jpy 144.895 144.415
eur/usd 1.10048 1.09655
gbp/usd 1.27386 1.26659
aud/usd 0.65334 0.6504
usd/cad 1.34659 1.34268
eur/gbp 0.86689 0.86359
usd/mxn 17.1144 16.9801
Equities and Commodities
S&P 500 4454.89
NASDAQ 15040.2
DOW 35105.1
GOLD 1914.87
SILVER 22.68

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.

About Mark Allen


Mark Allen, a Senior Trader at the GPS Capital Markets Salt Lake City office, boasts nearly 30 years’ market trading experience, with a focus on foreign exchange. Having worked with GPS for the last decade, he adeptly manages market risk during New York trading hours. Prior to joining GPS, Mark co-managed a London hedge fund from San Diego and traded for a multinational bank in San Francisco.