Key Macroeconomic Indicators for Base Metal Prices (2016-5-17)

SHANGHAI, May 17 (SMM) – Attention is turning to US April housing starts, building permits and industrial output on Tuesday.

US housing market may weaken further. US March building permits missed forecast, which makes it possible for April housing starts to be negative. US house price growth continues slowing and this means that US housing market lacks rising momentum. All those factors will weigh on US dollar index.

US annualized CPI for April will likely be disappointing. US annualized PPI for April posted the first gain in 3 months but still fell short of forecast. The annualized core PPI also missed March’s level. This indicates that US soft inflation will continue, which also explains why US Fed officials delay in rate hike. 

Caution on Short Bets after Overnight Gains, SMM Says