US Dollar Higher After Six Days of Declines


U.S. stock index futures are mixed, caught between the bullish vaccine optimism and disagreement between the Treasury Department and the Federal Reserve over the continuation of funding for some of the emergency programs implemented during the recession.

The U.S. has no scheduled economic data for today.

Overall, stock index futures are performing well on the news.


The U.S. dollar is higher today after declining for six consecutive days.

Longer term, the U.S. dollar is likely to drift lower due to expectations for an extended period of low interest rates and concerns over rising U.S. levels of debt.

Germany’s producer prices decreased by 0.7% year-on-year in October 2020, which is the ninth consecutive month of decline and in line with market forecasts. This was the smallest drop since February.

European Union leaders made no progress toward resolving a dispute to unlock a €1.8 trillion budget economic recovery package.

The British pound is higher due to upbeat retail sales data. Retail sales in the U.K. increased 1.2% month-over-month in October of 2020, beating market forecasts of unchanged. It is the sixth consecutive month of rising retail sales.

The Japanese yen is lower after a report showed consumer prices declined 0.4% in October year-on-year, which is the sharpest decline in over four years.

The Australian dollar is higher after a report showed retail sales in Australia increased by 1.6% month-over-month in October and beat the market consensus of a 0.3% advance and posting the first increase since July.


Robert Kaplan of the Federal Reserve will speak at 8:30

Financial futures markets are predicting there is almost a 100% probability that the Federal Open Market Committee will keep its fed funds rate unchanged at the December 16 policy meeting.

The December 30-year Treasury bond futures are getting close to major resistance at a downtrend line that comes in at 174^26, which is likely to hold.

In the months ahead the yield curve is likely to steepen, which should put pressure on futures at the long end of the curve, especially the 30-year Treasury bond futures, while futures at the short end of the curve are likely to hold steady.

Click here for full report

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