Nickel yesterday settled down -0.22% at 847.20 despite of Germany's manufacturing orders in June were much higher than expectations, and UK's industry output data also topped forecasts. Meanwhile, US June trade deficit improved, and this increased market concerns of an end to QE3, pushing down European and US stocks markets. LME nickel prices fell from $13,994/mt, and closing at $13,774/mt, down $97/mt. Richard Fisher, President of the Federal Reserve Bank of Dallas, Dennis Lockhart, President of the Federal Reserve Bank of Atlanta and Charles Evans, President of the Federal Reserve Bank of Chicago all hinted possible scaling back of QE3 in September and said July non-farm employment was neither good nor bad. US economic indicators released recently were largely positive, except last week's non-farm employment report. The effect of non-farm employment figures over the Fed's policy decision may not be as large as investors thought. Commodity prices generally fell on growing expectations that the Fed will begin to taper off QE3 in September. Trade deficit in the US fell from $45.03 billion to $34.22 billion in June, far better than forecasts. Exports rose to $191.17 billion, the largest growth since last September, while imports dropped to $225.4 billion. Traders now looked ahead to data scheduled for later in the week on China's trade balance as well as a report on inflation and industrial production, amid ongoing concerns over the Asian nation's economic outlook. Technically market is getting support at 839.90 and below same could see a test of 832.60 level, And resistance is now likely to be seen at 859.60, a move above could see prices testing 872.60.
Trading Ideas:
Nickel trading range for the day is 832.7-872.1.
Nickel yesterday settled down despite of Germany's manufacturing orders in June were much higher than expectations
Meanwhile, US June trade deficit improved, and this increased market concerns of an end to QE3
Charles Evans said US economy is strong enough to sustain the impact from the reduction of QE3 later this year.
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