Dollar Back at 20-Year Highs

STOCK INDEX FUTURES

The 9:00 central time May consumer sentiment index is expected to be 63.7.

Yesterday some of the major downside chart objectives were hit in the S&P 500 futures using the midway congestion pattern measured move technique.

CURRENCY FUTURES

The U.S. dollar index advanced to new 20-year high.

Interest rate differential expectations suggest higher prices are likely for the greenback.

Industrial production in the euro area fell 1.8% month-to month in March of 2022, which is the biggest decline in nearly two years and compared to market expectations of a 2.0% decline

Longer term, interest rate differential expectations remain bearish for the Japanese yen and lower prices are likely.

INTEREST RATE MARKET FUTURES

Now is a good time to cover short positions in the interest rate market futures, since there are indications that the rate of inflation is peaking.

Federal Reserve speakers today are Neel Kashkari at 10:00 and Loretta Mester at 11:00.

Financial futures markets are predicting there is an 87.2% probability that the Federal Open Market Committee will hike its fed funds rate by 50 basis points and a 12.8% probability that the  rate will increase by 75 basis points at the June 15 policy meeting.

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