The dollar index closed Friday with a loss (-0.32%), ending its daily consecutive win streak at 14. The dollar is +0.13% today but needs a daily close above 103.87 to resume the uptrend and draw in more buyers.
The dollar’s biggest move vs. the majors is a 0.81% gain vs. the Mexican peso which has weakened as Donald Trump’s general election polling numbers improve. The Trump campaign prominently features trade and border policy actions that could be a significant drag on Mexico’s economy. USD/MXN reached a high of 20.0740 today, its highest mark since early September when the pair reached 20.1520.
The dollar is +0.39% vs. JPY, +0.25% vs. GBP, +0.24% vs. AUD, +0.23% vs. NZD, +0.20% vs. CAD, and +0.19% vs. EUR.
Gold is +0.61% today at $2,737.11/oz, marking its third daily consecutive all-time high. Gold is +5.05% since the October 9th low at $2,604.96, outpacing the S&P 500 Index which gained 1.18% over the same period.
U.S. Treasury yields are higher in all tenors, led by the 7-year 0.066% gain. The benchmark 10-year yield is +0.065% at 4.149%, making a statement by breaking above last week’s resistance and trading at levels not seen since July.
This week’s U.S. economic calendar is light on the data front, featuring Mortgage Applications, Existing Home Sales, New Home Sales, Weekly Jobless Claims, and Durable Goods. There are nine scheduled speeches by Fed officials.
The Bank of Canada announces its rate policy decision on Wednesday. Markets are implying nearly a 50bps cut which would take the bank’s overnight rate to 3.75%.
Mexico’s economic calendar includes Retail Sales data on Wednesday and CPI on Thursday.
