TRADE WOES: India's exports fall 10.3% July 8th Month of Declines

QUOTE: Growth for the sake of growth is the ideology of the cancer cell
MARKET PULSE



  • Indian July exports fall 10.3% on-year to $23.1b
  • The Indian trade deficit reached $12.8 billion in July
  • Indian exports slipped for an 8th month, the longest decline since 2009
  • China increased its bullion reserve by 1.1% in July
  • Billionaire Stan Druckenmiller bought shares of SPDR Gold Trust, worth $323.6 m
  • Hedge-fund manager John Paulson cut gold holdings for the 1st time in 2 years.
  • Funds have been net-short on Gold for 4 weeks
  • Merkel says she's confident IMF will join Greece's 3rd bailout
  • BOE's Forbes says U.K.'s recovery damaged if rate rise is delayed
  • Long USD bets rise to a six- month high



INR
MARKETS

  • INR drops 0.2% at 65.30 per USD after falling 1.8% last week
  • 1-month implied volatility rises 5 bps at 8.0900%; average for past 12 months is 6.6785%
  • INR 1-month forwards drop 0.1% to 65.59 per USD
  • USD/INR Pivot at 65.0908
  • USD/INR support at 64.8766, 64.7458 and 64.4008
  • USD/INR resistance at 65.2216, 65.4358 and 65.7808
  • USD/INR 14-day RSI in overbought territory at 74

FACTORS

  • Govt. trying to curb price pressures further, Prime Minister Modi says
  • Global investors sold net $75.6m of Indian stocks on Aug. 13:
  • July exports fall 10.3% on-year to $23.1b
  • The Indian trade deficit reached $12.8 billion in July
  • Indian exports slipped for an 8th month, the longest decline since 2009
  • Weak exports continue to offset relief from a lower commodity prices



FOREIGN EXCHANGE
MARKETS

  • USD/JPY +0.05% at 124.37 (range 124.21-124.45)
  • EUR/USD -0.17% at 1.1090 (range 1.1087-1.1123)
  • AUD/USD -0.03% at 0.7377 (range 0.7364-0.7384)
  • USD/CAD +0.16% at 1.3109 (range 1.3087-1.3110)
  • GBP/USD +0.04% at 1.5648 (range 1.5634-1.5667)
  • USD/CHF +0.23% at 0.9779 (range 0.9756-0.9781)

FACTORS

  • Merkel says she's confident IMF will join Greece's 3rd bailout
  • BOE's Forbes says U.K.'s recovery damaged if rate rise is delayed
  • Long USD bets rise to a six- month high
  • Net long positions for USD rose for an eighth week through Aug. 11,
  • USD Spot Index rose 0.1 % to 1,209.23 after falling 0.3 %



GOLD
MARKETS

  • Gold spot added 0.4 % to $1,119.20
  • Gold rose 1.9 % last week
  • God Futures December up 0.5 % to $1,118.40
  • Silver spot added 0.4 % to $15.308, after declining 1.2 % Friday.

FACTORS

  • China increased its bullion reserve by 1.1% in July
  • Billionaire Stan Druckenmiller bought shares of the SPDR Gold Trust, worth $323.6 m
  • Hedge-fund manager John Paulson cut gold holdings for the 1st time in 2 years.
  • Funds have been net-short on Gold for 4 weeks