Daily Market Update

Earnings dictate markets, Dollar steady

February 22, 2024

The U.S. Dollar is trading in familiar ranges, a description that seems to characterize the week for FX flows with more action in other markets.


The much-awaited earnings from Nvidia solidified that the tech company’s value is the new hot stock to follow closely as it managed to profit more than its already strong expectations.

As a chipmaker in the midst of wild tech expansion, it can also add to the momentum for other risk-taking in tech as well as other sectors since the benefits can be had in developing an even more advanced digital world. Ultimately, the dollar has been affected in a negative way from the focus to other items of speculation that in turn are aiding in forming a more optimistic picture for investment. Buck is down half a percent overall from last week.

Meanwhile, data earlier showed Jobless Claims coming in at their lowest level in a month, only establishing labor is steady and the Fed has nothing to worry about. We will get February Purchasing Managers Index figures at 9:45AM. There will be more data pieces to chew next week as we close this one just looking at headlines.

What to Watch Today…


The Euro is trying to hold on to its slight upward momentum this week as economic indicators show the Euro-zone’s health is improving. Purchasing Managers Index figures showed an expansion reading this month of 50.0, the first time that is witnessed in the old continent since the end of July of last year. Furthermore, monthly Consumer Price Index in January came in with the desired deflation of (-0.4%) thus keeping the annual average at 2.8%. France and Germany are doing better than forecast, which we have pointed out as a good boost for the shared currency long-term. If indeed indicators can stay positive and impressive, Euro could rally as inflation is also playing into the hands of the European Central Bank’s planning and targets.


Sterling moves have also been limited in the past few days. There is a bit of mixed signaling with the Bank of England’s Governor Andrew Bailey now saying that cuts to interest rates could come before inflation reaches the target officials have set after maintaining a line of keeping rates higher for longer. Pain economically in 2023 could be overcome this year with PMIs in the U.K. coming out better than expected. We shall see if there is a streak of good numbers to be had on the other side of the Atlantic, and if so, there could be some turbulence for the buck around the corner.


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