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US Dollar Continues To Decline

CURRENCY FUTURES

The U.S. dollar index extended its decline today as interest rate differential expectation turn against the greenback.

US $100 Bill

The U.S. dollar is now at its lowest level since August 18.

The U.S. dollar has underperformed in the last two months.

The British pound extended gains to trade above the $1.17 mark for the first time late August. Data showed the U.K. economy contracted 0.2% in the third quarter, which is less than markets had expected.

STOCK INDEX FUTURES

Stock index futures are higher building on the momentum from last session’s sharp advance as investors reassessed the outlook for monetary policy.

A smaller than expected increase in U.S. inflation reinforced the belief that the Federal Reserve will slow the pace of its interest rate hikes.

The 9:00 central time November consumer sentiment index is expected to be 59.6.

The fundamentals for stock index futures are improving.

INTEREST RATE MARKET FUTURES

Federal Reserve officials welcomed Thursday’s news showing that inflation increased less than expected last month.

Dallas Federal Reserve Bank President Lorie Logan called the consumer price index report “a welcome relief,” but noted more rate increases probably are coming, although at a slower pace.

According to financial futures markets currently, there is an 85.0% probability that the Federal Open Market Committee will increase its fed funds rate by 50 basis points at the December 14  meeting and a 15.0% probability that the rate will be hiked by 75 basis points.

 

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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 information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM.  The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared.  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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