Higher Dollar Likely Long Term
STOCK INDEX FUTURES
Stock index futures are higher on Tuesday, as investors take a breather after a two-day slide prompted by Fed Chair Powell’s hawkish remarks at the Jackson Hole Symposium on Friday. Powell said the central bank will continue to raise interest rates to fight inflation despite a slowing economy.
The 9:00 central time August consumer confidence index is expected to be 97.4.
The 9:00 July Job Openings and Labor Turnover Survey (JOLTS) is anticipated to be 10.4 million. The Labor Department’s JOLTS report tracks the monthly change in job openings and offers rates on hiring and quits.
The U.S. dollar pulled back from fresh 20-year highs that were made yesterday.
The long term trend for the U.S. dollar is higher as interest rate differential expectations remain bullish.
The economic sentiment indicator in the euro area fell to 97.6 in August of 2022 from a downwardly revised 98.9 in July, and slightly below market forecasts of 98. This is the lowest reading since February last year.
Japan’s jobless rate was steady at 2.6% in July, while the availability of jobs increased for the seventh straight month to a more than two-year high.
INTEREST RATE MARKET FUTURES
Thomas Barkin of the Federal Reserve today said the Fed is committed to do what is necessary to lower inflation.
John Williams of the Federal Reserve will speak at 10:00.
According to financial futures markets, there is a 31.5% probability that the Federal Open Market Committee will hike its fed funds rate by 50 basis points and a 68.5% probability that the rate will increase by 75 basis points at the September 21 policy meeting.
The inverted Treasury yield curve continues to flash warnings of economic risks ahead.
Risk Warning: Investments in Equities, Contracts for Difference (CFDs) in any instrument, Futures, Options, Derivatives and Foreign Exchange can fluctuate in value. Investors should therefore be aware that they may not realise the initial amount invested and may incur additional liabilities. These investments may be subject to above average financial risk of loss. Investors should consider their financial circumstances, investment experience and if it is appropriate to invest. If necessary, seek independent financial advice.
ADM Investor Services International Limited, registered in England No. 2547805, is authorised and regulated by the Financial Conduct Authority [FRN 148474] and is a member of the London Stock Exchange. Registered office: 3rd Floor, The Minster Building, 21 Mincing Lane, London EC3R 7AG.
A subsidiary of Archer Daniels Midland Company.
© 2021 ADM Investor Services International Limited.
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.