Fundamental News: September 27, 2013
Data from the US Department of Labor yesterday showed Unemployment Claims beat its expectation for the fourth straight week last week. Compared to a median forecast of 319,000, only 305,000 Americans filed for unemployment insurance claims last week.
US Bureau of Economic Analysis revealed Final Gross Domestic Product grew at an annual rate of 2.5 percent in the second quarter, amid higher taxes and federal budget reductions. The previous quarter was also revised to 2.5 percent from the initial reading of 1.8 percent.
Meanwhile, the National Association of Realtors reported that Pending Home Sales contracted 1.6 percent in August. Economists were expecting a 0.9 percent decline after July’s -1.4 percent reading.
Today, Japan’s Statistics Bureau said the August National Core CPI edged up at an annual pace of 0.8 percent, while Tokyo Core CPI inched up 0.2 percent year-on-year.
In the UK, Nationwide Building Society announced House Price Index increased 0.9 percent in September. The prior reading was revised higher to 0.7 percent from 0.6 percent.
In Switzerland, KOF’s Economic Barometer advanced for the seventh straight month in September, 1.53 versus 1.46 median forecast.
More critical news will come your way soon, namely, US Core PCE Price Index, Personal Spending, Personal Income, and Revised University of Michigan Consumer Sentiment. FOMC Members Rosengren, Evans, and Dudley will give their own speeches.
Not much action is seen in Gold as price continues to trade in a narrow $20 or so band in between $1,300 and $1,350. Bulls must keep the pressure on and target $1,400 before the Friday close.
Oil traders seem undecided based on yesterday’s price action, when price traded in a $1 range just above the $102 level. Bulls are in serious danger if they permit the current price action to linger on. The ideal bullish close for this week would be around $104-$105. But it looks like this week is done in favor of the bears.