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ECB Meeting Tomorrow

by Archer Financial Services | Jun 07, 2017
By Alan Bush | Senior Financial Economist at ADMIS 

 
STOCK INDEX FUTURES

Prices are mixed ahead of a series of political and economic events due tomorrow, including former U.S. Federal Bureau of Investigation Director James Comey's public testimony, the U.K. parliamentary election and the European Central Bank’s policy meeting.   

In addition, traders are also closely monitoring the ongoing geopolitical tensions in the Middle East.      

Mortgage applications in the week ended June 2 increased 7.1%, which compares to the 3.4% decline in the previous week. 

The 1:00 central time April consumer credit report is expected to show a $15 billion increase.

The main trend for stock index futures is higher. 

  

CURRENCY FUTURES

The euro currency is lower due to media reports that the European Central Bank will lower its inflation forecast for 2019 at tomorrow’s policy meeting.

In addition, the ECB may provide additional clues on how long its ultra-easy monetary policy will remain in place.

Investors are anticipating tomorrow’s ECB meeting could be a date when officials hint at the possibility of a less accommodative monetary policy.

Longer term, we expect the U.S. dollar to underperform, while the euro currency advances.

Early results for the U.K. general election will start coming in tomorrow night, with the latest polls suggesting a tightening race.  

The Australian dollar traded higher on news that first quarter economic growth in Australia met analysts’ expectations, advancing 1.7% on an annualized basis.

Some economists were predicting Australia’s economy shrank in the first three months of 2017.

The Canadian dollar is higher in spite of lower crude oil prices and news that Canadian building permits declined .2% in April from March. 

     

INTEREST RATE MARKET FUTURES

Futures are mixed after yesterday’s gains that were linked to flight to quality buying.

The Federal Open Market Committee is widely expected to raise interest rates at its June 14 meeting.

The probability of a rate hike is 93%, which compares to 91% yesterday. 

 

SUPPORT AND RESISTANCE

June 17   S&P 500

Support    2425.00       Resistance    2438.00

 

June 17   U.S. Dollar Index

Support    96.360         Resistance    96.830

 

June 17    Euro Currency

Support    1.12030       Resistance    1.12980

 

June 17    Japanese Yen

Support    .91170         Resistance    .91750

 

June 17    Canadian Dollar

Support    .74250         Resistance    .74550

 

June 17   Australian Dollar

Support    .7488           Resistance    .7575

 

September 17   Thirty Year Treasury Bonds

Support    154^16        Resistance    155^8

 

August 17   Gold

Support    1287.0         Resistance    1300.3

 

July 17   Copper

Support    2.5300         Resistance    2.5600

 

July 17   Crude Oil

Support    47.43           Resistance    48.78

For more information about these markets, please contact Alan at 312.242.7911 or via email at alan.bush@admis.com. Thank you.

 

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Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The risk of loss in trading futures and options can be substantial. The views and opinions expressed in this letter are those of the author and do not reflect the views of ADM Investor Services, Inc. or its staff.  Research analyst does not currently maintain positions in the commodities specified within this report. The information provided is designed to assist in your analysis and evaluation of the futures and options markets.  However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright © ADM Investor Services, Inc.

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