Fundamental News: July 22, 2013
Statistics Canada revealed last Friday that Consumer Price Index turned flat in June. It also climbed 1.2 percent in an annual basis, subsequent to a 0.7 percent gain in May. The annualized gain was led by an annualized 2 percent advance in transportation prices (mainly, gasoline and passenger vehicle purchases). Gasoline prices increased 4.6 percent compared to June 2012.
Japan’s Prime Minister Shinzo Abe’s coalition was triumphant in last Sunday’s Diet or Upper House elections. The prime minister’s Liberal Democratic Party and party partner, the New Komeito, took 74 out of the 121 Upper House seats, giving it a very comfortable majority, halting the 6-year-long parliamentary deadlock, and boosting Abe’s positional longevity.
Surprisingly, Monday has a severe shortage of market-moving data. In the North American session, traders will focus on the release of US Existing Home Sales.
Opportunistic Gold bulls did not waste too much time and created some action in very early Monday trading. Bulls dashed through the $1,300 level quickly, and now price is trading in the upper-$1,310s after hitting a $1,322 high several hours ago. With this, bulls are off to a very good weekly start and they should pursue a break of $1,350 as soon as possible. Strike while the iron is hot!
Meanwhile, Oil is trading uncharacteristically quiet this Monday. Price is trading in a very tight range, most of the time above the $108 level. Near-term ranges to break come in around $106.50-$107 and $108.50-$109.