General Market Comment
US indices closed lower to finish the week on Friday, pressured by shares in the Energy (-0.63%), Technology Hardware & Equipment (-0.58%) and Media (-0.48%) sectors. On the economic data front, CPI decreased by 0.1% MoM in December, in-line with estimates, vs. unchanged in November. The S&P 500 (2,596.26) stays above its 20d moving average (2,521.28 – negative slope) but remains below 50d moving average (2,635.06 – flat slope).
European markets are expected to open on a negative note.
Foreign Exchange
The US dollar was bearish against most of its major pairs on Friday with the exception of the CAD and the EUR. On the economic data front, CPI decreased by 0.1% MoM in December, in-line with estimates, vs. unchanged in November.
The Euro was bearish against all of its major pairs. The UK GDP growth slowed, as expected, to 0.3% for the September-November period, a six-month low, vs +0.4% for the previous period. Separately, the UK industrial production fell by 0.4% in November (+0.2% expected) after a 0.5% decline the month earlier. Finally, the UK trade balance deficit narrowed to £2.9B in November from £3B in October.
The Australian dollar was higher against most of its major pairs except for the NZD and the GBP.
Commodities
After the close of Wall Street, WTI Crude Future (FEB 19) was down $0.9 to $51.69. The contract was above its 20D MA (@ $48.07) and below its 50D MA (@ $52.84).
Gold was about flat to $1288.2. The precious metal was above its 20D MA (@ $1274) and above its 50D MA (@ $1246).
Copper Future (MAR 19) on Comex was up 1.9c to 265.6c/lb. The contract was below its 20D MA (@ 267.3c) and below its 50D MA (@ 272.62c). In Europe, the London Metal Exchange reported its copper inventories increased 100 tons to 133700 tons