RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Dollar: The dollar will come into this morning’s trading under moderate pressure as it follows through on yesterday’s pullback from a new weekly high. Some comments made recently by Treasury Secretary Mnuchin of being less concerned with inflation were not received well by the market, and have kept the dollar in the defensive in spite of a rebound in risk appetites early today. Although a better than expected CPI result has modestly increased the chance for a December Fed rate hike, the dollar may have to wait on next week’s FOMC meeting results before it can sustain a recovery move. Near-term resistance is around 92.00 as the dollar may have to wait on the Fed next week before lifting clear of these current price levels. 

Dec ’17 Dollar Index Daily Chart

Dec '17 Dollar Index Daily Chart


Euro: The euro seems to have found moderate strength this morning and has climbed back above the key 1.2000 level near the end of a volatile trading week. Comments by an ECB official early today have underscored ideas that the ECB will announce QE tapering measures at next month’s policy meeting, while a better than expected Euro zone trade surplus has provided fresh evidence of the region’s growth prospects. As long as global markets avoid shifting back into a “risk off” mode, the euro has a good chance at extending this rebound. Near-term support is at 1.1960 as the euro may finish the week on a positive note. 

Dec ’17 Euro Index Daily Chart

Dec '17 Euro Index Daily Chart

Manon Lasserre