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FOMC Meeting on Wednesday

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

 

STOCK INDEX FUTURES

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. 

  

CURRENCY FUTURES

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.

    

INTEREST RATE MARKET FUTURES

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. 

 

SUPPORT AND RESISTANCE

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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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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