Fundamental News: October 22, 2013
Statistics Canada reported yesterday that Wholesale Trade for August grew 0.5 percent or CAD49.8 billion. Gains were reported in five of the seven industry subsectors, or 71 percent of wholesale sales. The motor vehicle and parts subsector led the gains in August, with only three provinces reported gains (British Columbia, Ontario, and Quebec). Meanwhile, Wholesale Sales for July was revised higher to 1.7 percent from 1.5 percent.
In the United States, the National Association of Realtors announced Existing Home Sales fell 1.9 percent to a seasonally adjusted 5.29 million in September. The decline in sales of previously owned homes was the first in three months, following a rise close to four-year high in August. NAR said increasing mortgage rates and prices deterred potential buyers. The August figure was revised down to 5.39 million from 5.48 million.
Today, the Office for National Statistics disclosed a better-than-expected Public Sector Net Borrowing in September. Higher tax revenues brought about by an improving economy saw public sector borrowing climb to only GBP9.4 billion, compared to a GBP10.4 billion median expectation. The August reading was also revised to GBP10.8 billion from the initial reading of GBP11.5 billion.
Later, Statistics Canada will disclose the latest Retail Sales data. This will be followed by the much-awaited US jobs data (specifically Unemployment Rate, Non-Farm Employment Change, and Average Hourly Earnings), the release of which was postponed due to the recent partial US government shutdown. US TIC Long Term Purchases will be out at 9:00 am New York time.
Gold has quietly drifted lower today for the third straight day, indicating traders are looking for the next direction. Price remains $10 off the $1,300 level and sellers are still eager to break that level. A continued absence of selling momentum would enable Gold buyers to proceed with their plan to attack the $1,350 level, sooner rather than later.
Oil officially broke and closed below the $100 level yesterday. Now, sellers will surely aim for a move toward $97-$98 if buyers will not be able to defend $99. Buyers should watch out as the current price action is against their favor.