Housing Report Shows Slowing U.S. Economy

Ten-year U.S. Treasury yields remained stuck near one-month
lows as more government reports point to a cooling U.S. economy. Investors
are starting to bet heavily that the Fed will end its cycle of rate-hikes,
because anti-inflationary measures would not be needed to soothe a cooling
economy. The next Fed meeting is in August, and would mark the 18th
straight rate hike if it is enacted.

The Dollar fell against the Japanese yen for the second
straight day after a housing report showed a decline in the number of homes sold
last month. With the BOJ set to raise rates before the end of the year,
traders are betting on the Japanese yen, which is backed by a growing, robust
economy. Economic reports released in the past week, on the other hand,
all point to a cooling U.S. economy, which would force the Fed to stop raising
interest rates. There was little action in EUDUSD currency index.

Crude oil futures rose 0.8% to close at $74.54 on Nigerian
supply disruptions and the continuing war in the Middle East. Royal Dutch
Shell today said that the co. could not guarantee its crude supply from Nigeria
after militants yesterday threatened to resume attacks on the pipelines.
This piece of news, coupled with the continuing tensions in the Middle East,
drove the price of crude higher on supply fears.

Metals closed higher across the board. Gold rose over 1%
to close at $631.10 an ounce and silver rose nearly 3% in trading today.
Aluminum also traded higher today, up 1.5%.

The softs traded mixed today, but mostly higher. Cocoa
was up 0.7%, coffee was up 1.3% and orange juice was down 0.6%.

Grains traded mixed today. Corn was up 0.7%, wheat was
up 1.5%, soy was down 1.3% and wheat was up 1.5%.

Meats traded mostly lower today, with feeder cattle down 0.3%
and potbellied pigs up 0.8%.


Economic News

New Home Sales Come In Well Below Economist Estimates (full
story
).

Jobless Claims Fell Unexpectedly Last Week (full
story
).

Durable Orders Growth Exceeds Economist Estimates (full
story
).