Summary
The Equity markets showed continued strength as positive earnings and solid European economic data continued to drive the US markets. The S&P 500 Index moved up 9 points to reclaim the 1100 level.
Tomorrow's Events
AUD
M 1:30
Australia Producer Prices
Q2
.8%
1.0%
GBP
M 8:00
UK Housing Price Index
July
8.7%
USD
M 12:30
US New Home Sales
June
5%
-32%
Trading Opportunities
GBP/USD
In the UK, better than expected GDP number helped push the pound toward resistance. Britain's economy grew much more quickly than expected last quarter, underscoring the sturdiness of its recovery and easing fears that the euro zone's debt problems and ambitious austerity measures at home could push the country back into recession. In its preliminary estimate Friday, Britain's Office for National Statistics said gross domestic product, a broad measure of the value of goods and services produced by the economy, rose 1.1% in the second quarter from the previous period, and expanded 1.6% between April and June from 2009's second quarter. Economists had expected growth of roughly half that amount, 0.6%. Britain's economy expanded 0.3% in the first quarter. Measured on a seasonally adjusted annual rate, as is the custom in the U.S., the U.K.'s GDP grew about 4.5% in the second quarter. The initial GDP report showed Britain's services sector growing 0.9, the fastest rate in three years. Services account for roughly 75% of Britain's GDP. Manufacturing also grew healthily, while government spending contributed only 0.2 percentage point to the growth rate last quarter. A break of 1.55, would be a strong buy signal.
COPPER
Copper prices are poised to break out as strong European PMI and construction data created demand for industrial metals and growth commodities. A close above the 200-day moving average, which is currently 3.18, is a strong buying signal.