US Dollar Lower For a Third Day
The U.S dollar index is lower for a third day.
The euro currency is higher despite a report that showed German consumer prices declined in September for the third consecutive month.
German consumer prices fell 0.2% on month and on the year as measured by national standards. Economists had forecast that prices would remain unchanged on a monthly basis and year-on-year.
The euro zone September consumer confidence index was -13.9 as predicted. In August the index was -14.7.
The British pound advanced following declarations from a senior E.U. official underlining the bloc’s commitment to a negotiated post-Brexit outcome.
In addition, the pound was supported by news that the number of mortgage approvals in the U.K. jumped in August to the highest level since October 2007.
The Australian dollar is higher after a report showed Australian consumer confidence increased by 1.6% last week, which was the fourth consecutive gain.
STOCK INDEX FUTURES
U.S. stock index futures are a little lower today after strong gains yesterday.
A weaker tone to today’s trade is linked to a pared-down stimulus proposal from congressional lawmakers.
The 9:00 central time September consumer confidence index is expected to be 88.8.
S&P 500, Dow and NASDAQ futures have recently advanced above downtrend lines that started in early September.
INTEREST RATE MARKET FUTURES
Federal Reserve speakers today are John Williams at 8:15, Patrick Harker at 8:30, Richard Clarida at 10:40, Randal Quarles at 12:00, John Williams at 12:00 and Randal Quarles at 2:00.
Interest rate market futures at the short end of the curve are likely to be supported by ideas that major central banks, including the Federal Reserve, will keep short term interest rates low for an extended period. Many analysts believe it will be several years, possibly not until 2023, before the Federal Reserve will be in a position to hike its fed funds rate, which currently stands at zero to 25 basis points.
However, futures at the long end of the curve, especially the 30-year Treasury bond futures may be undermined by the inflationary aspects of the Federal Reserve’s “average inflation targeting” policy, along with the potential for a global economic recovery.
Financial futures markets are predicting there is a 98.8% probability that the Federal Open Market Committee will keep its fed funds rate unchanged at the November 4-5 policy meeting.
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