Written Commentary
CURRENCY FUTURES
The U.S. dollar index declined to its lowest level in nearly three years, and fell to under the psychological 100.000 support level.
The greenback weakened mostly against the euro currency and the Japanese yen, and dropped to a 14-year low against the Swiss franc.
In looking at all of the financial futures markets, the best place to be right now is on the short side of the U.S. dollar index.
The inflation rate in Germany showed signs of easing in March, according to data confirmed by the federal statistics office on Friday. The rate decreased to 2.3% in March from 2.6% in February.
STOCK INDEX FUTURES
Stock index futures advanced when the bullish March producer price index report was released.
The March producer price index on a month-to month-basis declined 0.4% when a 0.2% increase was expected, and the producer price index on an annualized basis was up 2.7% when a gain of 3.4% was anticipated.
The March producer price index excluding food and energy on a month-to-month basis fell 0.1% when a 0.3% increase was forecast, and the producer price index excluding food and energy on an annualized basis was up 3.3% when a gain of 3.6% was estimated.
The 9:00 central time April consumer sentiment index is anticipated to be 55.0.
An accommodative Federal Reserve monetary policy remains an underlying supportive influence.
INTEREST RATE MARKET FUTURES
Futures were lower in the overnight trade but partially recovered when the bullish March producer price index report was released.
Federal Reserve speakers today are Susan Collins at 8:00, Alberto Musalem at 9:00 and John Williams at 10:00.
The Federal Open Market Committee is predicted to lower its key interest rate by 25 basis points four times in 2025 with the first reduction likely at the June meeting.
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