President Obama has turned the phrase speak softly and carry a big stick on its head the past two weeks and is seemingly content with the idea of speaking loudly and carrying no stick. In one swift speech last night, almost as fast as the volatility seen in FX and Gold, President Obama back downed from his intervention stance and allowed for the possibility of other solutions regarding the Syrian conflict. As written by Digital Markets Advisor before, this should have come as no surprise to anyone capable of reading the international political landscape the past few weeks – this as the U.K. backed down and President Obama waffled publicly.

Risk taking should come into full bloom again and continue into this weekend without the threat of a regional war developing in the Middle East, and via good economic data to point to – no matter how questionable the results are.

The EUR has climbed the past day after coming off of its recent short-term lows. French data yesterday missed its mark with the Industrial Production numbers, but not by a significant amount. In the wings the German election is approaching and a win by Angela Merkel is expected, though how strong her coalition will be remains a question. The Single Currency finds itself in a rather strong position as next week’s Federal Reserve FOMC meeting approaches in the States. Italian Industrial Production numbers will be published tomorrow, but essentially data will be rather light from Europe the remainder of this week. The 10-Year Bond Auction from Germany will not cause much ripple in either FX or the broad markets today.

Sterling has continued a strong run and is approaching highs not seen since the beginning of 2013. Gold as of this writing is trading lower and is testing a critical support level. The price for the precious metal is about 1365.00 as of this writing. Gold should be watched for further volatility particularly if it trades lower today.

The markets continue to bask in the light that lingers from summer. The sun remains out and risk taking is a tantalizing prospect for many traders at this juncture. The JPY has traded lower against the USD, global equity markets have risen for the most part, China has turned in better economic data, and Syria has been pushed to the back burner for now. Just another dose of optimism, drink it up while you can, because eventually the bottle could empty faster than expected.