Marketwatch North America

Daily Insights
August 18, 2023

The U.S. Dollar Index reached a multi-month high of 103.634 today, a level last traded in early June. Resistance against further dollar gains is near 104.00 and a monthly close above 104.75 will likely signal the end of the dollar’s downtrend which originated October 2022. Today’s dollar gains are spread across most G10 and major currencies, the widest gain vs. NOK (+0.81%), a commodity currency with value closely tied to the price of oil.

USD/CAD is +0.14% today, +0.93% for the week, and +2.85% during August. Next resistance is higher at 1.3650.

Oil prices are +0.20% today and -6.05% since the recent peak at $84.89. On August 8th oil prices reached a yearly intraday high but closed the day with a loss, generally considered a key reversal. Concerns about China’s economic deterioration and the potential of higher interest rates are weighing on risk sentiment and pressuring commodities.

The drop in risk sentiment is driving equities lower, with all the major global equity indexes in the red today. European indexes are -1.0% on average. S&P 500 futures are -0.60% today, -2.78% for the week, and -5.44% since the recent peak 4 weeks ago.

U.S. Treasury prices are slightly higher in most tenors today with the 10-year yield at 4.264%, retreating from yesterday’s multi-month high of 4.326%. Despite today’s decline, the 10-year yield is set to close with its 5th consecutive weekly advance.

Average 30-year fixed mortgage rates reached a 22-year high today of 7.60%. This follows Freddie Mac reporting the 30-year fixed mortgage rate of 7.09% yesterday.

Economic Calendar

CAD - IPPI m/m
GBP - Retail Sales m/m
CAD - RMPI m/m
CNY - Foreign Direct Investment ytd/y
USD - Mortgage Delinquencies
EUR - Final Core CPI y/y
EUR - Final CPI y/y

Market Indicators

Currency Pairs
Pair High Low
usd/jpy 145.79 145.153
eur/usd 1.08939 1.08599
gbp/usd 1.27657 1.26982
aud/usd 0.64289 0.63842
usd/cad 1.35644 1.35239
eur/gbp 0.85577 0.8528
usd/mxn 17.123 17.0637
Equities and Commodities
S&P 500 4345.78
NASDAQ 14587.9
DOW 34302.4
GOLD 1893.27
SILVER 22.77

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.