The US dollar ended the day mostly higher, gaining against all major currencies except the Japanese yen and Swiss franc (-0.16% and -0.06%, respectively).
From the strongest to the weakest of the major currencies
The US dollar appreciated the most against the AUD (+0.84%), NZD (+0.79%) and CAD (+0.59%). The day also saw solid gains (nearly 0.50%) against the euro and pound.
This trading week, the US dollar strengthened against all major currencies. Here are the benefits:
- Euro: +0.72%
- Yen: +1.59%
- Pound: +1.03%
- Swiss Franc: +1.46%
- Canadian dollar: +0.50%
- Australian dollar: +0.71%
- New Zealand dollar: +1.52%
This week’s rise in the US dollar came despite a drop in US yields, indicating either the US dollar is oversold, foreign currencies are overbought, or just a head-scratching move. There may also be a basic sense that the U.S. economy is stronger than other countries. Basically, the SNB made a surprise interest rate cut, but the Bank of Japan raised interest rates for the first time in 17 years.
The RBA and BOE left interest rates on hold this week, as did the Fed. The Fed left the dot plot unchanged with three rate cuts in 2024, but raised its GDP forecast and lowered year-end unemployment.
- 2 year yield -13.7 basis points
- 5-year yield -14.0 basis points
- 10 year yield -10.6 basis points
- 30 year yield -5.0 basis points
Yields fell in the day’s trading even as the dollar strengthened.
- 2-year yield 4.595%, -3.6 basis points
- 5-year yield 4.191%, -6.2 basis points
- 10-year yield 4.204%, -6.7 basis points
- 30-year yield 4.381%, -6.1 basis points
US stocks were mixed today, with the Dow and S&P ending the day lower but still rising this week.The Nasdaq closed at a new high today.
- The Dow Jones Industrial Average fell -0.77% but was up 1.97% for the week.
- S&P fell -0.14% but rose 2.29% for the week (biggest gain since December)
- Nasdaq rose 0.16%, up 2.85% (biggest gain since second week of January)
Next Friday will be a public holiday in Australia, New Zealand and Europe as Good Friday. Core PCE will be available in the US on Friday. Federal Reserve Chairman Jerome Powell will also speak on Friday, giving him an opportunity to comment on the Fed’s preferred measure of inflation.
Australian CPI will be released on Wednesday (Tuesday night in the US). Advance U.S. Durable Goods goes on sale Tuesday at 8:30 a.m. ET.
Other weekend markets:
- Crude oil is trading down $0.20 on the day. This week, the price fell by -$0.21 or -0.17%.
- Gold rose $9.97 (0.45%)
- Silver fell -$0.50 or -2.03%.
- Bitcoin has fallen -$4,869 or -7.1% this week.
Thank you for your continued support this week. Have a nice weekend.
