Written Commentary
STOCK INDEX FUTURES
Stock index futures are higher despite stepped up tensions between the U.S. and China and potential complications surrounding fresh federal stimulus spending plans.
The September S&P 500 futures hit the highest level since February 24 today and has recently filled the gap on the daily chart at 3300.75-3327.25.
The record high for the September S&P 500 futures is 3396.50.
The 9:00 central time June Job Openings and Labor Turnover Survey (JOLTS) is expected to total 5.288 million. The Labor Department’s JOLTS report tracks the monthly change in job openings and offers rates on hiring and quits.
The technical picture remains constructive for stock index futures.
CURRENCY FUTURES
The U.S. dollar is firming after recently falling to a two-year low.
Some of the bears on the greenback are speculating that the Federal Reserve may loosen its approach to inflation, which could happen at its next policy meeting in September.
The U.S. dollar is likely to drift lower from the morning higher prices.
The British pound is slightly higher today, but gains are likely to be limited by the belief that the Bank of England may provide further stimulus before the end of the year.
INTEREST RATE MARKET FUTURES
Futures are being supported by ideas that major central banks, including the Federal Reserve, are likely to keep interest rates low for an extended period.
The next Federal Open Market Committee meeting is scheduled for September 16. Financial futures markets are predicting there is an 88% probability that the FOMC will maintain its fed funds target rate at zero to 25 basis points.
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