FOMC Meeting on Wednesday

by Archer Financial Services | Jun 12, 2017
By Alan Bush | Senior Financial Economist at ADMIS 



Dow Jones and NASDAQ futures traded at new historical highs on Friday before a profit taking setback took place later in the day.

Much of the pressure on NASDAQ futures can be linked to two large investment banks making negative comments about the U.S. large capitalization technology sector.

Once the Federal Open Market Committee meeting is out of the way, expect a new leg up, including record highs.

The main trend for stock index futures is higher. 



Even though the Federal Open Market Committee is widely expected to hike its fed funds rate on Wednesday, the U.S. dollar is lower today on ideas that the accompanying statement from the Fed will provide a dovish policy outlook.

Longer term, we expect the U.S. dollar will continue to underperform.

The British pound is lower due to the ongoing political uncertainties, including the clouded outlook for Brexit.

The pound is lower in spite of a report that showed U.K. house prices advanced to a record in May.

The Bank of England and the Swiss National Bank will hold policy meetings on Thursday.

The Japanese yen is higher in spite of news that Japanese core machinery orders fell in April for the first time in three months.

The core machinery orders report, which is a leading indicator of business investment, declined 3.1% from the previous month, following a 1.4% advance in March.

The Bank of Japan will hold its monetary policy meeting on Friday.

The commodity currencies, the Canadian dollar and the Australian dollar are higher in conjunction with firming crude oil prices.



Flight to quality longs continue to be liquidated.

The Treasury will auction 10 year notes today.

The probability that the Federal Open Market Committee will increase interest rates at its June 14 meeting is 96%, which compares to 99% on Friday. 



June 17   S&P 500

Support    241900       Resistance    2437.00


June 17   U.S. Dollar Index

Support    97.010         Resistance    97.300


June 17    Euro Currency

Support    1.11980       Resistance    1.12410


June 17    Japanese Yen

Support    .90390         Resistance    .91210


June 17    Canadian Dollar

Support    .74210         Resistance    .74560


June 17   Australian Dollar

Support    .7511           Resistance    .7559


September 17   Thirty Year Treasury Bonds

Support    153^16        Resistance    154^16


August 17   Gold

Support    1261.0         Resistance    1276.0


July 17   Copper

Support    2.6150         Resistance    2.6500


July 17   Crude Oil

Support    45.45           Resistance    47.10

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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