Dollar Currency Traders are Nervous

In the currency markets we find the Euro trading 59/100ths of U.S cent higher at $1.4274. Dollar traders are nervous in advance of today’s U.S economic data.

While the calendar is thin; it contains an important report in the form of Consumer Confidence for July. Economists are calling for a reading of 49; down a shade from June’s 49.3. Consumer Confidence is the overriding driving force behind consumer spending. Spending drives our economy. The slight deterioration is giving traders reason to pause.

Today’s economic calendar also carries the Case Shiller Home Price index for May where the estimate calls for home prices to be down by 17.9% compared to last month’s annualized decline of 18.2%. It’s another case of bad but better.

Metals are trading lower this morning Silver is $13.99 down 4 cents. Gold is $2.00 lower and changing hands at $951.00. Palladium is down 1 dollar at $259.00. Platinum is $1,214.00 down 1 dollar in overnight trading.

Over in the energy sector Crude oil is flat with the last trade at $68.27 off 11 cents. In the equities market stocks as measured by the Dow Jones Industrial Average ended yesterday with a marginal gain of 15 points. This morning the Dow looks 29 points lower.

Asian markets closed a shade lower with Europe in the process of following suit. In world matters Israeli officials warned of a possible strike against Iranian nuclear facilities. The comments were made during Secretary of Defense Gates’s visit to Israel.

On the domestic front it appears that the contentious Health Care Reform Bill will not be voted on before the pending Congressional recess.

Weds Afternoon in The Markets

Gold close 952.00 up 4 dollars, Silver closed at 13.70 up 17 cents and the Dow is now 8905.00. Crude is 65.15 up 1.13, Platinum closed at 1175.00 unchanged and the Euro is now 142.30 up 51 points.

Short and sweet today.

Weds Morning Market Update

Metal traders face mixed background signals with the Euro up a marginal 22/100ths of cent at $1.4201. The metals are trading flat to a shade lower over in mid session European trading with Silver 3 cents lower at $13.50. Gold and Palladium remain unchanged from yesterday’s close with the last trade at $947.00 and $257 respectively. Platinum is $1169.00 off $10.00.

In the energy markets the price of Oil ended the day up another 74 cents in reaction to Ben Bernanke’s cautious but optimistic economic testimony. This morning energy traders are a bit more nervous with the Dow indicating a 39 point lower open after yesterday’s 67 point advance. Last on Crude $64.80 off 81 cents per barrel. Traders are also facing mixed inventory expectations with Oil being estimated to show a 2 million barrel decline in supplies, but Gasoline an 800,000 rise.

In domestic matters; President Obama is wading deeper into the growing health-care debate having met with conservative democrats in an effort to persuade them to back his costly plan. The rift within the democratic majority seems to be growing. The President will try to drum up additional support in a prime time speech tonight. Mr. Obama addresses the nation at 8pm Eastern. California is on the verge of finally balancing it’s deficit riddled budget.

Monday Market Wrapup

Metals ended the day higher but off the highs. Silver wound up with a gain of 25 cents at $13.65. Gold finished with a $10.00 rise at $948.00. Palladium closed at $255.00 up $5.00. Platinum ended at $1182.00 up $9.00.

The Euro kept its head of steam against the Dollar despite a better than expected U.S Leading Economic Indicator report. Future growth came in with a jump of .7%; better than the expectation of up .5%.

Crude Oil came off it’s early morning surge but remains higher at $63.82 up 27 cents on the day. Over in the stock market the Dow remains higher after the LEI report and more mixed corporate earnings. Last on the Dow 8792 up 48 points.

As for tomorrow; Fed Chairman Bernanke takes the hot seat on Capitol Hill to talk about our current economic condition. Traders are hoping to hear about details of the Fed’s bail out extraction plans. Tomorrow’s economic calendar will be idle.

Monday Morning Market Update

As the new trading week gets underway we find the metals trading higher in response to further advances in both Oil and the Euro.  The Dow gained 597 points for the whole of last week and looks about 58 points higher at this morning’s open. Crude Oil jumped $1.20 in response. Last trade $64.76.

Meanwhile the Dollar continues to lose ground on inflationary concerns. Last on the Euro $1.4221 up another 90/100ths of U.S cent.

As for the metals:

Silver is 20 cents higher at $13.60
Gold is $11.00 higher at $949.00
Palladium is $254.00 up $4.00
Platinum is at $1183.00 up $10.00 per ounce

In matters of importance floundering CIT Group has avoided bankruptcy with a last minute $3 billion rescue plan from its existing bond holders. This is putting the positive feel to stocks this morning. Furthermore; demand for Fed lending is abating in the latest sign that credit markets are on the mend.

As for our economic calendar we have only one report. Leading Economic Indicators for June is expected to show a tepid rise of .5%. This is a significant slow down for the May reading of up 1.2%. The market impact of this report will depend on today’s ongoing flow of corporate earnings results.