rounded corner
rounded corner
top border

US Dollar Lower For Third Day


Bookmark and Share

STOCK INDEX FUTURES

U.S. stock index futures are higher, as investors await developments on a fresh stimulus bill. More talks are scheduled today.

Selling yesterday was due to concerns that lawmakers were not making progress on a deal.

Housing starts in September were 1.415 million when 1.463 million were expected and building permits were 1.553 million, which compares to the anticipated 1.520 million.

The technical situation remains positive for stock index futures.

CURRENCY FUTURES

The U.S. dollar is lower for a third straight session as safe-haven longs are liquidated.

The euro currency is higher, hitting the highest level since October 12.

The British pound is steady after a Bank of England policymaker warned that downside risks to the economic outlook are beginning to materialize and the outlook for monetary policy is skewed towards adding further stimulus.

The Australian dollar fell to a three-week low after the Reserve Bank of Australia gave its clearest signal yet that it will lower interest rates further and announce a multi-billion dollar program of government bond buying in November to help fast track the economic recovery.

INTEREST RATE MARKET FUTURES

Futures at the longer end of the curve are under pressure as flight to quality longs are liquidated in light of higher stock index futures.

Yesterday, Federal Reserve Vice Chairman Richard Clarida said it is possible that the recession that began in March already has ended, though it could take another year before broad measures of economic output fully recover. Also, Mr. Clarida said, Additional support from monetary, and likely fiscal policy, will be needed.

Federal Reserve speakers today are Randal Quarles at 9:50, Charles Evans at 12:00, Lael Brainard at 2:00 and Raphael Bostic at 4:00.

Interest rate market futures at the short end of the curve are likely to be supported by ideas that major central banks, including the Federal Reserve, will keep short term interest rates low for an extended period. Many analysts believe it will be several years before the Federal Reserve will be in a position to hike its fed funds rate.

However, futures at the long end of the curve, especially the 30-year Treasury bond futures may be undermined by the inflationary aspects of the Federal Reserves average inflation targeting policy.

There is a double bottom on the December 30-year Treasury bond futures daily chart at the 173^10 173^11 level, which will likely be taken out.

Financial futures markets are predicting there is a 98.8% probability that the Federal Open Market Committee will keep its fed funds rate unchanged at the November 4-5 policy meeting.

Contact Alan for more extensive information on these markets at 312.242.7911 or via email at alan.bush@admis.com. Thank you.

Would you like to open an account with us? Go to our interactive New Account application at Open An Account. It is fast, saves on postage and its green.

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.



Recent articles from this author



About the author


Alan Bush has been a commodity analyst since 1976 focusing on the fundamental and technical aspects of stock index, interest rate and foreign currency markets. He has authored several articles for Stocks Futures and Options magazine and produced the “Futures Tech Focus” program, which is a technically based market outlook.

Alan served on the faculty of Oakton College as instructor of a course entitled, “Principles of Technical Analysis.” He has been interviewed on many national television programs, appearing on the Nightly Business Report, CNBC, CNN Moneyline, Reuters Television and Web FN. In addition, he has been frequently quoted in The Wall Street Journal, USA Today, The Bond Buyer and the Chicago Tribune and has been regularly interviewed on Chicago’s WMAQ radio business reports.

Alan can be reached at (312) 242-7911, or via email at alan.bush@admis.com.

Check out www.admis.com  

Published by Barchart
Home  •  Charts & Quotes  •  Commentary  •  Authors  •  Education  •  Broker Search  •  Trading Tools  •  Help  •  Contact  •  Advertise With Us  •  Commodities
Markets: Currencies  •   Energies  •   Financials  •   Grains  •   Indices  •   Meats  •   Metals  •   Softs

The information contained on InsideFutures.com is believed to be accurate but is not guaranteed. Market data is furnished on an exchange delayed basis by Barchart.com. Data transmission or omissions shall not be made the basis for any claim, demand or cause for action. No information on the site, nor any opinion expressed, constitutes a solicitation of the purchase or sale of any futures or options contracts. InsideFutures.com is not a broker, nor does it have an affiliation with any broker.


Copyright ©2005-2020 InsideFutures.com, a Barchart.com product. All rights reserved.

About Us  •   Sitemap  •   Terms of Use  •   Privacy Policy