header_img

Mario Draghi's Comments Support Euro Currency

by Archer Financial Services | Jun 27, 2017
By Alan Bush | Senior Financial Economist at ADMIS   

 

STOCK INDEX FUTURES

Futures are a little lower after earlier today San Francisco Federal Reserve President John Williams said the U.S. doesn't need much fiscal stimulus. He said, "We clearly don't need today a lot of fiscal stimulus in terms of short run demand stimulus," and he would prefer supply side policies addressing the longer term issues.

The 9:00 central time June consumer confidenc e index report is expected to be 116 and the 9:00 June Richmond Federal Reserve manufacturing index is anticipated to be 5.

At 12:00 Federal Reserve Chair Janet Yellen will discuss global economic issues with the President of the British Academy in London with an audience question and answer session.

The main trend for stock index futures is higher. 

 

CURRENCY FUTURES

The euro currency is higher after European Central Bank President Mario Draghi hinted that the ECB might start winding down its large monetary stimulus as the euro zone economy improves, although he warned against an abrupt end to years of easy credit policies.

Traders believe his comments are an indication that the ECB is moving closer to reducing its monetary stimulus and many analysts expect that in September or October the central bank will announce that it will start tapering its quantitative easing program. 

The euro currency is likely to continue to advance while the U.S. dollar is probably going to work lower, as interest rate differential expectations turn more favorable to the currency of the euro zone and more unfavorable towards the U.S. dollar.

The Canadian dollar and the Australian dollar are higher due to firming crude oil prices.

 

INTEREST RATE MARKET FUTURES

Hawkish interest rate comments from Mario Draghi of the ECB pressured the interest rate futures markets.

Other Federal Reserve speakers today are Philadelphia Federal Reserve Bank President Patrick Harker at 10:00 and Minneapolis Federal Reserve Bank President Neel Kashkari at 4:30 this afternoon.

The Treasury will sell five year notes today.

The probability that the Federal Open Market Committee will increase its fed funds rate at the December 13 meeting is 54%, which compares to 50% yesterday. 

 

SUPPORT AND RESISTANCE

 

September 17   S&P 500

Support    2426.00       Resistance    2443.00

 

September 17   U.S. Dollar Index

Support    96.300         Resistance    97.210

 

September 17    Euro Currency

Support    1.12180       Resistance    1.13550

 

September 17    Japanese Yen

Support    .89430         Resistance    .90100

 

September 17    Canadian Dollar

Support    .75460         Resistance    .75960

 

September 17   Australian Dollar

Support    .7563           Resistance    .7631

 

September 17   Thirty Year Treasury Bonds

Support    155^24        Resistance    157^8

 

August 17   Gold

Support    1238.0         Resistance    1256.0

 

September 17   Copper

Support    2.6200         Resistance    2.6650

 

August 17   Crude Oil

Support    43.17           Resistance    44.33
 

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

 

Would you like to open an account with us? Go to our interactive New Account application at Open an Account. It is fast, saves on postage and it’s green.

 

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.

Offers