Fundamental News: September 6, 2013
Just like the Bank of England, the European Central Bank decided on Thursday to leave its rate unchanged at 0.50 percent.
US ADP Non-Farm Employment Change rose 176,000, slightly better than estimated. Meanwhile, US Unemployment Claims improved last week, as only 323,000 Americans filed for their claim benefits.
US ISM Non-Manufacturing PMI jumped to 58.6 from July’s 56.0 reading. This is far better than the 55.2 median estimate, and is the 44th straight monthly growth.
On the other hand, the Census Bureau said Factory Orders slid 2.4 percent in July, the worst in four months. This bodes poorly for the third quarter’s economic growth.
Today, Destatis (Federal Statistics Office) reported that Germany’s Trade Balance surprisingly dropped in July. Surplus reached EUR14.5 billion, smaller than the estimate and last month’s EUR15.8 billion surplus. German exports slid despite the Euro-area recovery. Meanwhile, Industrial Production declined 1.7 percent in July.
In Switzerland, Foreign Currency Reserves reportedly stood at CHF434.2 billion. Consumer Price Index remained negative for the second month, -0.1 percent.
In the UK, Manufacturing Production and Industrial Production stood at 0.2 percent and 0 percent in July, according to the Office for National Statistics. Consumer Inflation Expectations came in at 3.2 percent, while Trade Balance made a marked decline, –GBP9.9 billion in July.
Later, the market will watch for the releases of US Non-Farm Employment Change and Unemployment Rate; and Canada’s Unemployment Rate, Employment Change, and Ivey PMI.
The $1,400 level in Gold continues to prove its importance and bulls have failed to get through it in yesterday’s North American session. This prompted a quick and considerable decline to $1364, an area where price stayed until the end of the session. Currently, price is at a standstill with traders awaiting the release of jobs data from Canada and particularly the US.
Oil continued to tighten up yesterday as it meandered around Wednesday’s trading range. $108 remains magnetic and we are seeing a slight uptick toward $109, although the range today has remained very tight. Things could get messy around the release of the US Jobs data; hence traders are advised to sit on their hands.