By Alan Bush | Senior Financial Economist at ADMIS
The Trump administration will unveil by Friday a list of advanced technology imports from China that could be subject to new U.S. tariffs.
China’s ambassador to Washington said China will take counter measures of the “same proportion” and scale if the U.S. imposes additional tariffs on Chinese products.
Ongoing trade issues will only temporality pressure futures.
The euro currency is steady after it was reported that the euro zone March PMI was 56.6, as expected.
The U.S. dollar and the euro currency are in broad sideways congestion patterns. Ultimately the U.S. dollar should breakout to the downside and the currency of the euro zone should breakout to the upside.
I continue to anticipate the double top resistance at the 1.26500 - 1.26580 area in the June euro currency to be taken out, although it may take some time.
The British pound is higher on news that the U.K. March Manufacturing PMI was 55.1, which compares to the estimate of 54.4.
There was little market reaction when Bank of Japan Governor Kuroda told parliament the bank is discussing stimulus exit options.
The Reserve Bank of Australia kept interest rates unchanged for the 18th straight meeting. The RBA kept its official cash rate at a record low 1.5%. The Australian dollar firmed after the RBA governor said inflation is expected to pick up as the economy strengthens.
Futures are lower since it appears very likely that the Federal Reserve will hike its fed funds rate in June.
Also, there appears to be no flight to quality buying in spite of the ongoing trade frictions between the U.S. and China.
Minneapolis Federal Reserve Bank President Neel Kashkari will speak at 8:30.
The probability of a fed funds rate hike from the Federal Open Market Committee at the June 13 meeting is 85%, which is unchanged from yesterday.
June 18 S&P 500
Support 2573.00 Resistance 2616.00
June 18 U.S. Dollar Index
Support 89.450 Resistance 89.850
June 18 Euro Currency
Support 1.23210 Resistance 1.24150
June 18 Japanese Yen
Support .94260 Resistance .95150
June 18 Canadian Dollar
Support .77550 Resistance .78170
June 18 Australian Dollar
Support .7661 Resistance .7701
June 18 Thirty Year Treasury Bonds
Support 146^0 Resistance 146^30
June 18 Gold
Support 1333.0 Resistance 1349.0
May 18 Copper
Support 3.0350 Resistance 3.0750
May 18 Crude Oil
Support 62.75 Resistance 63.89
For more information about these markets, please contact Alan at 312.242.7911 or via email at firstname.lastname@example.org. 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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