Written Commentary
INTEREST RATE MARKET FUTURES
Futures are mixed.
There are no major Federal Reserve speakers scheduled for today.
Financial futures markets are predicting there is a 72% probability that the Federal Open Market Committee will keep its fed funds rate unchanged at its June 14 policy meeting, and there is a 28% chance of a 25 basis point increase.
However, there is over a 50% probability that the FOMC will hike its fed funds rate by 25 basis points at the July 26 policy meeting.
Traders now await the U.S. consumer price index report on Tuesday and the producer price index report on Wednesday of next week for further clarity on inflationary pressures.
CURRENCY FUTURES
The U.S. dollar index is steady.
Yesterday’s sharp decline in the greenback was due to the substantially larger than expected weekly U.S. jobless claims report.
The European Central Bank will decide monetary policy on June 15, and recent comments from officials suggest borrowing costs will continue to increase.
The Bank of Japan will hold its monetary policy meeting on June 16. Policies are likely to remain unchanged.
STOCK INDEX FUTURES
Stock index futures are mixed.
There are no major economic reports scheduled for today.
Futures continue to overperform the news.
Interested in more futures markets? Explore our Market Dashboards here.
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.
