Daily markets morning round-up: E-mini S&P, gold, crude & Treasuries

Gold (February)

Yesterday’s close: Settled at 1322.5

Fundamentals: The Dollar Index is squaring off against the September lows which would put it at the lowest level since December 2014. PPI and weekly Jobless Claims both missed the mark handily yesterday and traders brace for the main event of the week; CPI accompanied by Retail Sales. A strong CPI read would put gold on its back foot, however, it depends on how strong because there is going to be a lot of doubt surrounding higher inflation over a string of months. Gold is breaking out on a technical basis for the next leg higher.

Technicals: This is as bullish as it gets, minus the today’s fundamental hurdle and resistance at 1335.8.Natural Gas (February)

Yesterday’s close: Settled at 3.084

Fundamentals: Yesterday’s storage read came in at -359, a new record and topped analyst as well as our estimates. Prices have risen since and will likely do so into Monday. Weather is milder this week and next and this opens the door for a retreat after Monday, what has become a weekly occurrence; higher to start the week and price action dissipates lower.

Technicals: Price action has gotten out above first resistance and is attempting to hold. We are eyeing a trend line... Please sign up for a Free Trial at Blue Line Futures in order to view our entire technical outlook and proprietary bias and levels. 

10-year (March)

Yesterday’s close: Settled at 123’04

Fundamentals: Treasury prices turned higher yesterday on strong demand in the 30-year auction. Still, remains subdued and hugging the 123 mark ahead of this morning’s main event; CPI accompanied by Retail Sales. Business Inventories are at 9:00 am CT. Dallas Fed President Kaplan commented on expected three rate hikes, nothing new here. German officials have taken a step in the right direction in forming a government and this could explain the slight uptick in yields and small pressure on prices. Ultimately, today is all about the CPI read as this could write a chapter or two in the 2018 book.

Technicals: Price action has consolidated off extreme pressure midweek and this is good for dip buyers.

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