General Market Comment
US indices closed lower at the start of the week on Monday, pressured by shares in the Software & Services (-2.35%), Retailing (-1.39%) and Capital Goods (-1.16%) sectors. On the economic data front, pending home sales increased by 0.9% in June, above the expectation of +0.1%, from -0.5% in the last month. In addition, Dallas Fed manufacturing activity decreased to 32.3 in July (anticipated 31) from 36.5 in May. The S&P 500 (2,802.60) remains above both its 20d moving average (2,802.60 – positive slope) and 50d moving average (2,763.27 – positive slope).
European markets are expected to start on a flat note.
Foreign Exchange
The US dollar was bearish against all of its major pairs on Monday. On the economic data front, pending home sales increased by 0.9% in June, above the expectation of +0.1%, from -0.5% in the last month. In addition, Dallas Fed manufacturing activity decreased to 32.3 in July (anticipated 31) from 36.5 in May.
The Euro was bullish against its major pairs with exception of the NZD and the CHF. The euro-zone consumer confidence index was -0.6 in July in the final estimation, meeting the estimate, vs. -0.5 in June. Separately, economic confidence index decreased to 112.1 in July (112 expected) from 112.3 a month earlier. Germany CPI was up by 0.3% in July in the first reading (+0.4% anticipated) after a 0.1% rise in June. CPI YoY grew 2% vs +2.1% a month earlier. UK mortgage approvals were up to 65.6K in June from 64.7K in May.
The Australian dollar was bearish against its major pairs with exception of the USD and the JPY.
Commodities
After the close of Wall Street, WTI Crude Future (SEP 18) was up $1.3 to $69.98. The contract was above its 20D MA (@ $69.53) and above its 50D MA (@ $68.25).
Gold was about flat to $1221.9. The precious metal was below its 20D MA (@ $1238) and below its 50D MA (@ $1266).
Copper Future (SEP 18) on Comex was about flat to 279.55c/lb. The contract was below its 20D MA (@ 280.05c) and below its 50D MA (@ 299.75c). In Europe, the London Metal Exchange reported its copper inventories increased 2750 tons to 256275 tons.