Fundamental News: October 23, 2013

 

Statistics Canada disclosed yesterday that Retail Sales only grew 0.2 percent in August, but Core Retail Sales increased by 0.4 percent. 56 percent of the entire retail trade or 6 of 11 subsectors reported gains, led by higher sales in food and beverage shops. Six provinces reported gains, led by Ontario and British Columbia.

 

The Bureau of Labor Statistics in the United States reported that the September Non-Farm Employment Change increased by 148,000, lower than the 182,000 median expectation. The August figure, meanwhile, has been revised higher to 193,000 from 169,000. The Unemployment Rate improved slightly to 7.2 percent.

 

The US Department of Treasury reported that TIC Long-Term Purchases registered -$8.9 billion in August. This was a marked decline from July’s $31 billion reading.

 

Today, the Australian Bureau of Statistics announced that Consumer Price Index gathered pace in the third quarter, rising 1.2 percent which puts it up by 2.2 percent year-on-year. Trimmed Mean CPI was 0.7 percent.

 

In the UK, the Bank of England said MPC Asset Purchase Facility votes and the Official Bank Rate votes remained at 0-0-9 in favor of status quo.

 

We would still have a few more busy hours ahead with the release of US Import Prices; Belgian NBB Business Climate, and Bank of Canada’s Rate Announcement and Statement, Monetary Policy Report, and press conference

 

Commodities News

 

After a few quite trading days, we finally saw Gold resume its trend higher yesterday. Price, though, stopped at $1,344 and closed the day a few dollars below. Today, price is taking the time to retreat from the highs, but so far it only managed to reach a low of $1,328. $1,300 is expected to remain supportive.

 

 

Oil is now on its third consecutive day of freefall after the $100 level yielded to pressure on Monday. Price is now trading in the $96s and we still do not see any end in sight. Sellers should expect for buyers to prop price around $92-$95.

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