[Base Metal]Metals and Currencies Daily Market Watch July 24, 2015 - Emkay Commotrade

By Paul Ploumis 24 Jul 2015 Last updated at 06:10:16 GMT

Gold futures slightly retreated for a 10th day in the longest run of losses since 1996 as Goldman Sachs Group Inc. predicted further declines and investors sold more through funds.The metal dropped 6.1 percent as it fell every day since July 9 in New York.

Macro Headlines

•Jobless claims in U.S. plunged by 26000 to 2,55,000 to the lowest

level in since 1973

• Euro zone consumer confidence fell to -7.1 more than expected last

month from -5.6 in the preceding month

• The preliminary China purchasing managers index (PMI) contracted

to a 15-month low at 48.2 in July

• UK retail sales in June fell 0.2% compared with May from

expectations of 0.4%

Currencies

• USDINR: The Indian rupee dropped sharply as most banks rushed to buy the

greenback taking cues after data released that showed a more than expected fall in

US jobless claims numbers. Dollar is also strengthening on global front on upbeat

of US economic data which may nothing but to push rate hike estimates of Fed

earlier this year. The rupee opened at 63.9700 per dollar, as against yesterday’s

close of 63.7600. Dollar index stabilized at 97.58 levels before housing data. As

per the earlier forecast USDINR buying likely to continue or the target of 64.20

followed by 64.50-80 levels in near term.

• EURINR: The Euro made good amount of rally above Rs 70 against rupee erasing

its earlier losses. Euro zone consumer confidence data remained bearish for the

counter. Today EURUSD edged lower as markets digested news the Greek

parliament had approved a second series of austerity measures and turned their

attention to upcoming data on euro zone manufacturing activity. EURINR uptrend

is still not over, buying on dips likely to be continued for the target of 70.50.

Commodities

• Base Metals: Base metals tumbled last night on upbeat of US jobs data added

bullish bets for dollar. LME traders are facing northern summer slowdown period

ending reducing consumers demand, concerns over Chinese growth continue to

influence base metals.LME Copper worsened as futures tumbled to a six-year low

in New York after Goldman Sachs Group is forecasting that prices will drop another

15 per cent by year-end as Chinese demand grows at the weakest pack. Though

data is coming from US remains supportive for industrial front but it’s adding more

sign of rate hike from Fed. Further reduction of metals likely to be continued on

bargain hunting as such no fundamental trigger found in the market after Greece

issues eased to keep metals on higher side. Copper likely to take support at 330,

Nickel at Rs.680 and aluminum at Rs.101. Dollar rise likely to support the counters

on MCX in terms of parity price.

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