The major currencies were quiet overnight with traders still digesting yesterday’s higher-than-expected CPI and assessing scenarios ahead of tomorrow’s Producer Price data (producer inflation). The G10 currencies have barely moved the needle on spot returns with the dollar’s biggest changes a 0.19% gain vs. JPY and a 0.20% drop vs. NOK at the extremes. On balance the dollar is weaker, reflected in the U.S. Dollar Index which is -0.04%.
With the Fed, BoE and ECB on hold until late in Q2 (at the soonest), there is little on the event horizon to disrupt foreign exchange markets, keeping downward pressure on FX volatilities.
U.S. Treasury yields are higher, propelling the 10-year yield to its 4th consecutive daily gain, +0.031% today at 4.185% compared to last Friday’s low at 4.034%.
After peaking at 7.36% on February 27th, U.S. 30-year mortgage rates have declined nine consecutive days to 7.03% through yesterday. Lower rates have helped to keep mortgage applications buoyant which were +7.1% through March 8th.
Global equity indexes are a mix of minor gains and losses in trading today. Equity futures are pointing to a 0.30% drop in the Nasdaq 100 and drop of 0.04% in the S&P 500 at today’s open.
Gold is +0.26% at $2,162.69, partially rebounding from yesterday’s 1.12% decline.
Bitcoin is leading in the headlines today after marking its 3rd consecutive all-time high, now trading at $73,000 on ETF-fueled gains.
