Lower US Dollar
The U.S. dollar was higher in the overnight trade but is currently lower.
Severe technical damage was done to the greenback earlier this week when major trendlines were penetrated on the downside.
The euro area annual inflation rate was 2.9% in October 2023, which is down from 4.3% in September.
Bundesbank President Joachim Nagel said a cut in the European Central Bank’s interest rates won’t be happening in the near future. Borrowing costs “have to remain at a high level for a sufficient period.”
Retail sales in the U.K. fell by 0.3% month-over-month in October 2023, following an upwardly revised 1.1% decrease in September and falling short of the market estimate of 0.3% growth.
STOCK INDEX FUTURES
Housing starts in October were 1.372 million when 1.350 million were expected and building permits were 1.487 million when 1.463 million were anticipated.
The technical aspects have become much more supportive to stock index futures this week, especially after on Tuesday the S&P 500 futures broke out above a triple top formation on the daily chart.
INTEREST RATE MARKET FUTURES
The yield on the 10-year U.S. Treasury note dropped below 4.40%, marking a two-month low.
Futures came under pressure when the U.S. housing starts and permits numbers were released.
Federal Reserve speakers today are Michael Barr at 7:45, Susan Collins at 7:45, Mary Daly at 8:30, Austan Goolsbee at 8:45 and Susan Collins at 9:15.
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 almost a 100% probability that the Federal Open Market Committee will keep its fed funds rate unchanged at its December 13 policy meeting.
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