By Alan Bush | Senior Financial Economist at ADMIS
Stock index futures are higher for a third day.
There are no major economic reports scheduled for today.
Futures are performing well on limited news.
In the longer term, traders will probably gradually shift their focus of attention more toward corporate earnings and the still overall accommodative global interest rate policies and away from a variety of geopolitical worries, including global trade tensions.
The U.S. dollar continues to advance, as traders focus on the very likely increase in the fed funds rate from the Federal Open Market Committee at its June policy meeting.
The euro currency is lower on news that German manufacturing orders dropped for the third straight month in March.
Total manufacturing orders fell .9%, when economists had forecast an increase of .5%. In addition, the German statistics office revised lower its orders estimate for February. It now shows a monthly drop in orders of .2%, while the initial estimate had indicated a .3% increase.
The data adds to evidence that Europe's largest economy has slowed, following strong growth in the fourth quarter of last year.
The European Central Bank will probably not be in a position to hike interest rates until possibly 2019.
In addition, recent economic reports from the U.K. suggests the Bank of England may not be able to increase its key interest rate until much later this year.
The Japanese yen in lower even though the minutes from the BoJ’s monetary policy meeting showed Japanese policymakers expect the local economy will continue its upward trend.
The Canadian dollar and the Australian dollar are lower in spite of higher crude oil prices.
Federal Reserve speakers to today are Richmond Federal Reserve Bank President Tom Barkin at 1:00, Dallas Federal Reserve Bank President Robert Kaplan at 2:30 and Chicago Federal Reserve Bank President Charles Evans at 2:30.
The FOMC remains on track to deliver its second rate hike of the year when it meets next month.
The probability of a fed funds rate increase from the FOMC at the June 13 meeting is almost 100%, which is unchanged from yesterday.
I am still expecting only two more rate hikes this year from the Federal Reserve; one in June and another in December.
June 18 S&P 500
Support 2659.00 Resistance 2679.00
June 18 U.S. Dollar Index
Support 92.230 Resistance 92.850
June 18 Euro Currency
Support 1.19250 Resistance 1.20180
June 18 Japanese Yen
Support .91610 Resistance .92260
June 18 Canadian Dollar
Support .77550 Resistance .78050
June 18 Australian Dollar
Support .7486 Resistance .7555
June 18 Thirty Year Treasury Bonds
Support 143^8 Resistance 144^0
June 18 Gold
Support 1306.0 Resistance 1323.0
July 18 Copper
Support 3.0600 Resistance 3.1050
June 18 Crude Oil
Support 69.55 Resistance 70.89
For more information about these markets, please contact Alan at 312.242.7911 or via email at email@example.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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