Explore Special Offers & White Papers from ADMIS

Dollar Pressured, Less Hawkish FOMC


The U.S. dollar came under pressure yesterday and today due to less hawkish comments from Federal Reserve officials.

Inflation in the euro zone fell by more than expected, though European Central Bank President Christine Lagarde said there is “no clear evidence” that it has peaked and promised to lift interest rates further.

Euro zone inflation eased to 6.1% in May from 7.0% in April, which is below expectations of 6.3%.

Core inflation, which excludes volatile food and fuel prices, fell to 5.3%, which is below expectations for 5.5%.


Stock index futures bounced off of lows yesterday after comments from Fed Governor Philip Jefferson and Philadelphia Fed President Patrick Harker suggested the central bank will leave rates steady this month.

The Fiscal Responsibility Act of 2023 passed in the House of Representatives. The bill is now headed to the Senate and is anticipated to be approved before the June 5 default deadline.

According to executive coaching firm Challenger, Gray & Christmas, Inc., U.S. companies have announced more job reductions this year than during all of 2022.

Planned layoffs reached approximately 417,500 jobs through May, which is more than four times the job cuts during the same period a year ago. U.S. based employers announced 80,890 job cuts in May of 2023, which is higher than 66,995 in April.

The May Automated Data Processing Inc. employment report showed an increase of 278,000 when up 160,000 were  expected.

Nonfarm productivity on the first quarter was down 2.1% when a decline of 2.7% was anticipated and unit labor costs increased 4.2% when up 6.3% was predicted.

Jobless claims in the week ended May 27 were 232,000 when 235,000 were estimated.

The 8:45 central time May PMI manufacturing final is expected to be 48.5.

The 9:00 May Institute for Supply Management manufacturing index is predicted to be 47.0.

The 9:00 April construction spending report is predicted to show a 0.2% increase.


Futures firmed yesterday after Federal Reserve Governor Philip Jefferson said he was in favor of “skipping a rate hike at a coming meeting,” as an opportunity to “see more data before making decisions about the extent of additional policy firming.”

Patrick Harker of the Federal Reserve will speak at 12:00.

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.


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.

Latest News & Market Commentary

Explore Special Offers & White Papers from ADMIS

Get Started