US Dollar Remains Firm
STOCK INDEX FUTURES
Personal income in May was down 4.2%, which compares to expectations of a 6.6% decline. Consumer spending was up 8.2% when a gain of 8.6% was anticipated.
The 9:00 central time June consumer sentiment index is estimated to be 78.9.
Stock index futures will be supported by the belief that any slowdown in the global economic recovery will be met with additional accommodation from the world’s central banks along with more fiscal stimulus.
The U.S. dollar is higher with safe-haven demand supporting the greenback.
The euro currency is lower despite news that the annual growth rate of the broad monetary aggregate M3 in the euro zone increased to 8.9% in May 2020 from 8.2% in April.
Interest rate differential expectations have recently turned slightly more favorable to the U.S. dollar.
INTEREST RATE MARKET FUTURES
The yield on the 10-year U.S. Treasury note edged down to 0.670%, from 0.674% Thursday.
According to financial futures markets there is a 97.8% probability that the Federal Open Market Committee will leave its fed funds rate unchanged at zero to 25 basis points at its July 29 policy meeting.
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.