Fundamental News: October 21, 2013
Statistics Canada announced last Friday that Consumer Price Index grew 1.1 percent in September, following the same increase in August. CPI and core CPI climbed 0.2 percent on a seasonally adjusted basis in September. Prices for alcoholic beverages and tobacco products and shelter led the advance in 7 out of eight major components. Prices for health and personal care declined for a second consecutive month. Meanwhile, prices increased in nine provinces in September, with Manitoba posting the largest advance. British Columbia posted no change on an annual basis.
Today, Japan’s Trade Balance data was the sole important economic news release during the Asian session. The Ministry of Finance revealed a trade balance of –JPY1.09 trillion, its 15th consecutive monthly trade deficit. Exports grew 11.5 percent in September, compared to a 14.5 percent advance last August. Meanwhile, Imports gained 16.5 percent, higher by 0.50 percentage point than the August reading.
In Europe, Destatis reported that Germany’s Producer Price Index grew 0.3 percent in September after easing 0.1 percent in August. Compared to a year earlier, PPI declined 0.5 percent.
Soon, traders will await the release of Canada’s Wholesale Sales and US Existing Home Sales.
Big reversal was seen in Gold last week, thanks to the $50 run-up that broke the $1,300 level last Thursday. Price remains comfortable above $1,300, but we can expect a test of this level this brand new week. The next upside goal is $1,350-$1,400.
Sellers are working hard early this week with a quick attack on the $100 level. With fresh momentum on their side, sellers might aim for a move toward $97-$98 once $100 breaks.