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U.S. Dollar Higher

By Alan Bush | Senior Financial Economist at ADMIS   

 

STOCK INDEX FUTURES

U.S. stock index futures are lower due to dampening hopes of a rapid economic recovery. 
     
Also weighing on stock index futures was yesterday’s news that the U.S. is considering imposing tariffs on $3.1 billion worth of products from the U.K., France, Germany and Spain. 

Jobless claims in the week ended June 20 were 1,480,000 when 1,380,000 were expected.

The first quarter final gross domestic product report showed a 5.0% decline, as anticipated. 

Durable goods orders in May were up 15.8% when a gain of 10.0% was estimated.

The 10:00 central time June Kansas City Federal Reserve manufacturing index is predicted to be negative 9.

Stock index futures will be supported by the belief that any slowdown in the global economic recovery will be met with additional accommodation from the world’s central banks along with more fiscal stimulus internationally. 

CURRENCY FUTURES

The U.S. dollar is higher with safe-haven demand supporting the greenback after it was reported yesterday that the U.S. was considering tariffs on exports from Britain, France, Spain and Germany.

The euro currency is lower despite news that German consumer sentiment is likely to rise in July, according a market research group.  
  
Interest rate differential expectations have recently turned slightly more favorable to the U.S. dollar.  

INTEREST RATE MARKET FUTURES 

Federal Reserve speakers today are Robert Kaplan at 8:30, Raphael Bostic at 10:00 and Loretta Mester at 11:00.
The Treasury will auction seven-year notes today.
In keeping with the global trend of central banks adding accommodation, the Philippine central bank cut its benchmark interest rates to offer additional support for the economy.  
According to financial futures markets there is a 97.8% probability that the Federal Open Market Committee will leave its fed funds rate unchanged at zero to 25 basis points at its July 29 policy meeting.
 

SUPPORT & RESISTANCE


September 20 S&P 500
Support    3003.00     Resistance    3060.00 

September 20 U.S. Dollar Index
Support    97.090        Resistance    97.680

September 20 Euro Currency
Support    1.12050      Resistance    1.12830 

September 20 Japanese Yen
Support    .93120         Resistance    .93600

September 20 Canadian Dollar
Support    .73120         Resistance    .73550 

September 20 Australian Dollar
Support    .6843           Resistance    .6900

September 20 Thirty Year Treasury Bonds
Support    178^0          Resistance    178^20

August 20 Gold
Support    1762.0         Resistance    1788.0 

September 20 Copper
Support    2.6350         Resistance     2.6700 

August 20 Crude Oil
Support   37.00             Resistance    38.70

 



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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