Dollar Index Weakens
The U.S. dollar index weakened to its lowest level since September 1 as recent economic reports reinforced beliefs that the Federal Reserve has reached the end of its tightening cycle.
Severe technical damage was done to the greenback earlier this month when major trendlines were penetrated on the downside.
Germany’s economy shrank slightly in the third quarter compared with the previous three months. The figure confirmed an initial estimate, published in late October, which showed Europe’s largest economy contract by 0.1%.
Business sentiment in Germany improved for the third month in a row in November, according to a survey of companies. The Ifo business-climate index increased slightly to 87.3 in November from a revised 86.9 in October, according to data from the Ifo Institute. However, the reading was a little lower than expectations of 87.5.
Japanese core consumer inflation grew slightly but below expectations in October.
STOCK INDEX FUTURES
Stock index futures are mixed.
The 8:45 central time November PMI manufacturing index is expected to be 49.9.
The technical aspects have become much more supportive to stock index futures.
INTEREST RATE MARKET FUTURES
Futures are mostly lower, especially at the long end of the curve.
Despite recent hawkish comments from Federal Reserve officials, there is a growing consensus that the Federal Reserve has concluded its rate hiking cycle.
Financial futures markets are predicting there is a 95% probability that the Federal Open Market Committee will keep its fed funds rate unchanged at its December 13 policy meeting.
Futures at the front end of the yield curve are likely to perform better than futures at the long end of the curve, especially the 30-year bonds.
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.
© 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.