US Dollar Firms After Multi-Month Lows

CURRENCY FUTURES

The U.S. dollar index is higher today after sliding to multi-month lows on Friday with some traders saying markets overreacted to the miss on U.S. inflation.

dollar with up arrow

The U.S. dollar has underperformed in the last two months as interest rate differential expectations have turned against the greenback.

Industrial production in the euro area advanced 0.9% from a month earlier in September 2022, following an upwardly revised 2.0% growth in August and beating market expectations of 0.3%.

Switzerland’s producer and import prices advanced 4.9% from a year earlier in October of 2022, slowing from a 5.4% gain in the previous month. This was the lowest producer and import price inflation since September 2021.

Bank of Japan Governor Haruhiko Kuroda said there are some signs of local inflation easing, which is a development that helps reduce pressure on the central bank to tighten its ultraloose monetary policy.

STOCK INDEX FUTURES

Stock index futures are lower after last week Federal Reserve Governor Christopher Waller said the central bank was not softening its fight against inflation, despite last week’s consumer price index report showing consumer prices increased less than expected in October.

Christopher Waller said investors overreacted to last week’s soft inflation data while warning that the U.S. central bank still has work to do before ending interest rate hikes.

This is a big week for quarterly results from big retailers.

The fundamentals and technicals for stock index futures are improving.

INTEREST RATE MARKET FUTURES

The technicals are looking more constructive for the interest rate market futures.

John Williams of the Federal Reserve will speak at 5:30 central time this afternoon.

According to financial futures markets currently, there is an 81.0% probability that the Federal Open Market Committee will increase its fed funds rate by 50 basis points at the December 14  meeting and a 19.0% probability that the rate will be hiked by 75 basis points.

 

Interested in more futures markets?  Explore our Market Dashboards here.

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.

© 2024 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.

Latest News & Market Commentary

Explore the latest edition of The Ghost in the Machine

Explore Now