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U.S. GDP Better than Expected

by Archer Financial Services | Jun 29, 2017
By Alan Bush | Senior Financial Economist at ADMIS   

 

STOCK INDEX FUTURES

Futures are higher after it was reported that U.S. economic growth was stronger than previously thought in the first quarter.

Gross domestic product expanded at a seasonally and inflation adjusted annual rate of 1.4%, which compares to the estimate of 1.2% growth.    

In the week ended June 24 initial jobless claims rose 2,000 to a seasonally adjusted 244,000. Economists forecast 240,000 new claims.

The main trend for stock index futures is higher. 

 

CURRENCY FUTURES

The U.S. dollar fell to a new eight month low. Lower prices are likely for the greenback.

The euro currency advanced to a 13 month high after it was reported that euro zone businesses and consumers became more optimistic in June about their economic prospects. The main trend for the euro currency is higher.

The European Commission said it’s Economic Sentiment Indicator, jumped to 111.1 in June from 109.2 in May, which is its highest level since August 2007.

Also, there was support for the euro after a report showed German inflation unexpectedly accelerated in June, increasing to 1.5% from 1.4%.  This compares to the median estimate of an increase of 1.3%.

The Japanese yen is lower after the Bank of Japan said it is not planning to reduce asset purchases until its 2% inflation target is reached. 

The Australian dollar is being supported by higher crude oil and iron ore prices.

 

INTEREST RATE MARKET FUTURES

Futures came under pressure when the stronger than expected U.S. gross domestic product report was released.

At 12:00 central time St. Louis Federal Reserve Bank President James Bullard will speak on monetary policy.

The probability that the Federal Open Market Committee will increase its fed funds rate at the December 13 meeting is 53%, which compares to 54% yesterday. 

SUPPORT AND RESISTANCE

 

September 17   S&P 500

Support    243400        Resistance    2448.00

 

September 17   U.S. Dollar Index

Support    95.300         Resistance    95.880

 

September 17    Euro Currency

Support    1.14110       Resistance    1.14980

 

September 17    Japanese Yen

Support    .88710         Resistance    .89540

 

September 17    Canadian Dollar

Support    .76640         Resistance    .77120

 

September 17   Australian Dollar

Support    .7620           Resistance    .7687

 

September 17   Thirty Year Treasury Bonds

Support    153^16        Resistance    155^6

 

August 17   Gold

Support    1234.0         Resistance    1256.0

 

September 17   Copper

Support    2.6650         Resistance    2.7200

 

August 17   Crude Oil

Support    44.55           Resistance    45.68

 
 

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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