USD Index Futures Prices Lag in Slow Summer Trading

August 23, 2016 4:47AM CDT

U.S. Dollar Index futures prices are in slow-mode as a lack of economic news and world events fails to prop up the commodities futures markets.

The September contract in U.S. Dollar Index futures was down .16 percent at 94.345 on Tuesday in a lackluster trading morning of trading within commodities futures. The spot contract of the U.S. Dollar has been fluctuating, with an earlier high of 94.565. Comments from U.S. Federal Reserve Vice President Stanley Fischer, indicating a possible interest-rate hike from the central bank, had propped up prices of the U.S. currency futures index. Fischer said the U.S. economy is already close to meeting the central bank’s goals and that growth will continue.

U.S. Fed Chair Janet Yellen will speak on August 26 at an annual symposium hosted by the Kansas City Fed in Jackson Hole, Wyoming. Commodities futures markets participants will pay close attention to central bankers speakers’ views on the next rate increase as the most recent economic reports show differing degrees of strength. A strong labor market is a major factor in the possibility of a future hike.

Meanwhile, the lone report of relevance to commodities futures markets is New Home Sales for July, a report released by the U.S. Department of Commerce. Most analysts expect sales to have dropped to about 570,000 units for the month, compared to the June rate of 592,000.

Ahead of the new home sales report, a top luxury homebuilder, Toll Bros. released third-quarter earnings, which grew 69 percent to 61 cents, as revenue rose 23.5 percent from a year earlier to $1.27 billion, ahead of the $1.25 estimate.

All bodes well for U.S. Dollar Index futures, but trading within the commodities futures markets is volatile during the slow summer months.

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