General Market Comment
US markets were closed on Wednesday to observe Independence Day. On the economic data front, MBA Mortgage applications fell 0.5% last week for a second consecutive week. All eyes are on Thursday’s jobs report. The top performing sector of the week so far is Telecommunication Services (+3.11%) while the worst is Automobiles & Components (-4.27%). The S&P 500 (2,713.22) is still below both its 20d moving average (2,752.55 – negative slope) and 50d moving average (2,7189.46 – positive slope). European markets are expected to start on a flat note.
Foreign Exchange
The US dollar was under pressure against all of its pairs on Wednesday except for the CAD. On the economic data front, MBA Mortgage applications fell 0.5% last week for a second consecutive week. All eyes are on the June jobs report tomorrow.
The Euro was bearish against all of its major pairs with the exception of the CAD. Eurozone PMI services index was 55.2 in final estimation in June vs 55 in first reading and 53.8 the month before. UK PMI services index rose to 55.1 in June vs 54 in May. Economists anticipated 54.
The Australian dollar was under pressure against all of its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (AUG 18) was about flat to $74.33. The contract was above its 20D MA (@ $68.69) and above its 50D MA (@ $68.79).
Gold was about flat to $1254.4. The precious metal was below its 20D MA (@ $1273) and below its 50D MA (@ $1291).
Copper Future (SEP 18) on Comex was down 5.6c to 286.1c/lb. The contract was below its 20D MA (@ 309.44c) and below its 50D MA (@ 310.75c). The 14d RSI below 30 (23.76) indicates Copper Future (SEP 18) contract was oversold. In Europe, the London Metal Exchange reported its copper inventories decreased 4300 tons to 282225 tons.