Talking Points
- Crude Oil, Copper Sink as Chinese, European PMIs Sink Risk
Appetite
- Gold and Silver Under Pressure as US Dollar Hits Fresh
18-Month Highs
- All Eyes on US Jobs, ISM Data on Hopes US Can Offset Global
Headwinds
Commodity prices are pushing sharply lower as risk aversion
grips financial markets anew into the end of the trading week.
Growth-geared crude oil and copper prices are following stocks
lower while anti-fiat gold and silver are under pressure as
safe-haven demand pushes the US Dollar to fresh 18-month highs. The
selloff follows a disappointing set of manufacturing PMIs from
China
, the
UK
and
Switzerland
. Final revisions of Eurozone PMI readings were nudged marginally
higher but continued to
firmly point toward contraction in manufacturing
activity
.
S&P 500 stock index futures are pointing sharply lower ahead
of the opening bell on Wall Street, warning the selloff is likely
to continue through the week-end, but an approaching round of
headline US event risk may yet prompt a sentiment shift. The
monthly US Employment report is expected to show the economy added
150k jobs in May, marking a narrow improvement from April's 115k
result. In a rare scheduling change, the ISM Manufacturing is also
due to cross the wires, but forecasts here point to a softer print.
Traders will look to the results to establish near-term
expectations for the likelihood that a firmer recovery in the US
will (at least to some extent) offset headwinds to global output
from Europe and Asia.
WTI Crude Oil (NY Close): $ 86 . 53 // - 1 . 29 // - 1 . 47
%
Unchanged from yesterday: "Prices broke through support in the
90.14-88.54 region marked by the early September swing top and the
61.8% Fibonacci retracement. Sellers now aim to challenge the 76.4%
level at 83.34. The 90.14-88.54 area has been recast as near-term
resistance."
Daily Chart - Created Using FXCM Marketscope 2.0
Spot Gold (NY Close): $1560.43 // -2.95 // -0.19%
Prices continue to consolidate above support in the
1522.50-1532.45 area. The outlines of a Descending Triangle are
beginning to emerge, hinting at forthcoming bearish continuation.
Confirmation on a break below support would expose a measured
downside objective at 1445.95. Near-term trend line resistance
lines up at 1596.90 and 1584.82. A break above the latter level
exposes the 1600/oz figure.
Daily Chart - Created Using FXCM Marketscope 2.0
Spot Silver (NY Close): $27.70 // -0.20 // -0.72%
Prices are drifting sideways above support at 27.06, with gains
still capped at 28.70. A break lower initially exposes the 26.05-15
area . Alternatively, a push higher through resistance opens the
door for a challenge of 29.71.
Daily Chart - Created Using FXCM Marketscope 2.0
COMEX E-Mini Copper (NY Close) : $3.3 66 // -0. 024 // - 0 . 71
%
Prices broke through support at 3.373, the 38.2% Fibonacci
expansion, with sellers now testing the 50% level at 3.323. A break
below this boundary exposes the 61.8% Fib at 3.274. The 3.373 level
has been recast as resistance.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for
Dailyfx.com
To contact Ilya , e-mail ispivak@dailyfx.com . Follow Ilya on
Twitter at
@IlyaSpivak
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