Fundamental News: September 25, 2013
The United States Census Bureau disclosed on Wednesday that Durable Goods Orders inched up 0.1 percent in August amid car demand. This follows a 7.4 percent July decline which was the worst reading since August 2012. Meanwhile, Core Durable Goods Orders eased 0.1 percent after declining 0.8 percent in July.
Another report from the US Census Bureau showed sales of new homes increased in August. The sales of new single-family homes increased by 421,000, close to the 422,000 median forecast. The July reading was revised lower, from 394,000 to 390,000.
Today, the European Central Bank issued the latest M3 Money Supply report which showed a marginal increase to 2.3 percent in August.
In the United Kingdom, the Office for National Statistics revealed the country posted a current account deficit of GBP13 billion in the second quarter of the year, worse than the –GBP11.2 billion expectation. Meanwhile, the current account deficit for the prior quarter was revised higher to GBP21.8 billion from the initial reading of GBP14.5 billion. On the other hand, Final Gross Domestic Product for the second quarter edged higher, 0.7 percent as expected. This is the third consecutive quarterly gain for this figure.
Later, all eyes will be on a few critical US figures, namely Jobless Claims, Final GDP, and Pending Home Sales. Friday will cap the week with a plethora of economic releases.
Gold bulls indeed took advantage of the situation yesterday and pulled off a decent daily close around $1,334. Currently, price is trading close to this area as traders await the influx of North American liquidity. Bulls must keep the pressure on and target $1,400 soon.
We saw just a minor decline yesterday in Oil, but nevertheless it was significant since buyers failed to poke through $104. Bulls are most likely jittery right now; they should survive today if they can create a strong close above $104.