Is Higher Inflation Ahead?
Rising oil and gold prices hint
higher inflation ahead. Crude Oil +0.85% continued it’s
surge higher, closing at $61.38 and rising for the fifth time in six days.
Natural Gas +1.44% closed at a new 9-month high. Gold +0.23% closed
higher for the sixth day in seven, the precious metal is seen as a hedge against
inflation.
The most heavily traded futures contracts experienced
unusually low volatility today with the largest percentage movers being the less
popular contracts. Lumber +3.44% and Rough Rice +2.84% had
strong moves higher today.
The Euro pushed to its highest level since May after
better than expected economic data in the EU hit the markets. The currency is
now trading above $1.24.
The treasuries markets were quiet today as traders await
the monthly jobs report due tomorrow. Prices declined across the yield curve in
anticipation the report will be in line with strong economic data released
recently. The consensus forecast for tomorrow’s Non-Farm Payrolls number is
175,000.
Economic News
Monster Employment Index: Actual 134
Jobless Claims: New Claims – Actual 312 K Consensus 315 K
Ashton Dorkins