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Stock Index Futures Higher on Limited News

by Archer Financial Services | Jun 28, 2017
By Alan Bush | Senior Financial Economist at ADMIS   

 

STOCK INDEX FUTURES

Futures are higher on limited news.

The 9:00 central time May pending home sales report is expected to show a 1% increase. 

The main trend for stock index futures is higher. 

 

CURRENCY FUTURES

The U.S. dollar fell to an eight month low in the overnight trade before a recovery. 

The euro currency advanced to a one year high in the overnight session in a follow through move after European Central Bank President Mario Draghi yesterday indicated the ECB is moving closer to reducing its monetary stimulus. 

Many analysts believe that in September or October the central bank of the euro zone will announce that it will start tapering its quantitative easing program. 

Also, there was some support for the euro after a report showed lending to households in the euro zone grew at a faster rate in May. Lending to households increased 2.6% from a year ago after 2.4% annualized growth in the previous month. 

Some profit taking came into the euro more recently and it is now lower on the day.      

Longer term, 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 in spite of weaker crude oil prices.

Some of the strength in the Canadian dollar took place after Bank of Canada Governor Stephen Poloz made comments that suggest the central bank of Canada could increase interest rates next month.    

 

INTEREST RATE MARKET FUTURES

Futures at the long end of the curve continue to decline after yesterday’s hawkish interest rate comments from Mario Draghi of the ECB.

The Treasury will sell seven 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 is unchanged from yesterday. 

 

SUPPORT AND RESISTANCE

 

September 17   S&P 500

Support    2411.00       Resistance    2435.00

 

September 17   U.S. Dollar Index

Support    95.730         Resistance    96.440

 

September 17    Euro Currency

Support    1.13330       Resistance    1.14490

 

September 17    Japanese Yen

Support    .89120         Resistance    .89810

 

September 17    Canadian Dollar

Support    .75760         Resistance    .76680

 

September 17   Australian Dollar

Support    .7563           Resistance    .7631

 

September 17   Thirty Year Treasury Bonds

Support    154^0          Resistance    155^28

 

August 17   Gold

Support    1244.0         Resistance    1259.0

 

September 17   Copper

Support    2.6450         Resistance    2.6850

 

August 17   Crude Oil

Support    43.47           Resistance    44.55


 

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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