Key Macroeconomic Indicators for Base Metal Prices (2017-6-16)

SHANGHAI, Jun. 16 (SMM) –Market will eye a series of US economic data on Friday, including housing starts, building permits, LMCI and University of Michigan’s consumer confidence index for June.  

Annualized housing starts in the US fell to 1.17 million units in April, the lowest since November 2016. Building permits also fell sharply in April from March and missed forecast. NAR report showed US existing home sales will rise 3.5% 5.64 million units in 2017 and rise another 2.8% to 5.8 million units in 2018. Home prices rose and house inventories remained tight. As such, housing starts and building permits should improve in May.  

US non-farm payrolls were quite disappointing in May. Market has expected LMCI to fall in May, so the negative impact on dollar will be limited.  

The BOJ will announce policy decision today and will probably keep monetary policy unchanged. It was reported earlier this week that the BOJ is readjusting communication mechanism over exit of stimulus policy in the future. If BOJ governor’s speech today gives signals of such move, yen will be affected.  

Greece reached a bailout deal with creditors. The euro zone will give out EUR 8.5 billion bailout to Greece.