Stocks futures rose Wednesday as the dollar slumped, but the market could continue to trade sideways, as investors sort out whether improving data means the economy is getting strong enough for the Fed to hike interest rates.
The dollar fell overnight after Bank of Japan Governor Haruhiko Kuroda suggested the Japanese currency shouldn't fall further since it was already "very weak".
Stock futures gained, even as rising rates could keep a lid on any rally. The 10-year Treasury note was yielding 2.48 percent, ahead of the $21 billion 1 p.m. ET auction.
Julian Emanuel, equities and derivatives strategist at UBS, said, "Stocks are) trying to come to grips with the fact that rising yields on both the long end and the short end tend to mean that the economy is going to be better but the thing is, you've only seen the first very small shards of that evidence, and you're really waiting for more that gives you a strong sense of confidence that that's going to be the case, and in the meantime, you have Greece in the background."