Fundamental News: October 4, 2013
The United States Labor Department revealed on Thursday that Unemployment Claims beat its forecast for the fifth straight week. Analysts expected 315,000 jobless claims, but only 308,000 Americans filed their applications for jobless benefits in the prior week.
Meanwhile, Institute for Supply Management reported Non-Manufacturing PMI slid in September. Purchasing Managers’ Index declined to 54.4 from August’s 58.6 reading.
According to Bank of Japan’s Monetary Policy Statement and press conference earlier today, the current monetary policy is adequate to fulfill the BOJ’s targets. BOJ Chief Kuroda said raising sales tax would improve trust on the local economy’s finances.
In Germany, Destatis said Producer Price Index slipped 0.1 percent for the second straight month in August. Euro-area turned flat in August after rising 0.2 percent in July.
Later, Canada will release Ivey PMI. There won’t be a US Non-Farm Payroll report later due to the ongoing US government shutdown. US FOMC Members William Dudley and Jeremy Stein will give their respective speeches later.
Gold returned to its quiet mode of trading after two days of considerable volatility. Price stayed above $1,300 but was easily capped by Wednesday’s high. Bulls are losing time and the least that they could do is hold their line around $1,300 this week.
Despite the fleeting upside break in Oil, $104 proved to be a good cap in yesterday’s trading. Unlike the price action in Gold, Oil is set to close the week to the upside. Ideal weekly close is above $104.