MARKETS
[justify]INR rose for the first time in 3 days as some investors judged its decline to a 10-month low yesterday to be excessive. The INR strengthened 0.1 % to 56.1400. 1-month volatility, rose 1 BP , or 0.01 % point, to 8.99 %. 3-month forwards traded at 57.07 Vs. 57.14 . 3-Month NDF was at 57.02 vs.57.13.[/justify]
FACTORS
- Technical: The 14-day RSI is 77.6, above the 70 threshold
- Global funds bought $14.8 Bln. of Stocks and $38.5 Bln of Debt (new high)
GOLD
MARKETS
[justify]Gold rose 0.4 % to $1,397.96 traded at $1,396.30 in Asia . Prices are down 5.4 % in May . Gold August rose 0.2 % to $1,394.90. Silver was little changed at $22.495, set for a fourth monthly drop.[/justify]
FACTORS
- Assets in the SPDR Gold Trust, expanded yesterday for the first time since May 9,
- Holdings in ETP (June 2011 Low) fell 5.4 % in May.
- Shanghai Gold cash contract volume at 19,599 kg. from 15,641 kg on May 28.
FOREIGN EXCHANGE
MARKETS
[justify] USD was at 101.04 JPY having risen 3.7 % since the end of April. The JPY was little changed at 130.94 per EUR after earlier gaining as much as 0.4 %. EUR fell 0.1 % to $1.2959, /USD trimming its monthly slide to 1.6 %. USD Index slid 0.2 % to 83.519.[/justify]
FACTORS
- JP Morgan Chase & Co.'s G-7 Volatility Index, rose to 10.14 %, (Feb. 27 high).
- Japanese investors sold a net of $11 Bln of foreign bonds in the week ended May 24.
- JPY 10-year bond yields at a 1-year high of 1 % last week from 0.55 % on April 3.
- Central bank will increase currency sales to combat a "significantly over-valued" NZD.
- CAD Advances as central bank signals rate hikes, but leaves rates unchanged.
- EU Warns of 'Huge' Uncertainty If CFTC Won't Delay Swaps Rule.
- AUD gains as building approvals grew more than estimated.
COPPER
MARKETS
3-Month Copper dropped 0.5 % to $7,226. Relative strength index at 47.
FACTORS
- Copper stockpiles rising to a 10 year high.
- Steel Rebar futures traded near the lowest level in 8 months.
- Freeport-McMoRan has restarted some operations at its Grasberg Mine in Indonesia .
OIL
MARKETS
[justify]WTI July at $93.09 down 4 cents, . The volume of all futures traded was 42 % below the 100-day average. WTI July fell $1.88 to $93.13 yesterday, the lowest close since May 1. Brent July up 26 cents at $102.69. Brent at a premium of $9.60 to WTI.[/justify]
FACTORS
- U.S. stockpiles rose the most in a month (4.4 million Barrels May-24 week).
"Oil may stay around $100 in the short-term", Karim Djoudi, the Algerian finance minister.