Snore. Yawn. What? Oh I’m sorry the broad markets are trading. However, it just doesn’t feel like a normal Friday without the Non-Farm Employment Change on the venue. But seriously does anyone care? Yes, the politicians and their public agonizing into any microphone and a hungry media which wants to feed their viewers with dire warnings seem intent on showing their concerns. Otherwise investors continue to come to work, trading houses are functioning, and business – real business – moves forward.
The EUR climbed to new highs yesterday and seems intent on testing marks not seen for nearly two years. The Single Currency has found takers since the Federal Reserve essentially put the brakes on a tapering and the EUR’s trend has been self-evident. While the GBP which has had a strong summer, has become more tranquil and appears as if it wants to swim a comfortable range within the waters it traverses. Going into the weekend it will be all about the amount of risk traders want to take on because there is very little economic data to hang their hats on today. Unless the German PPI counts as major data which has already been released (it missed its estimate), investors will have to wait until next week for any statistical excitement. But don’t go to sleep quite yet.
The broad markets offer an interesting opportunity for short-term traders who have the ability to let ranges move. Nothing is guaranteed but patient trades with the goal of picking off nibbles of pips in the FX market will likely find room to maneuver. While we are not particularly keen about the ability of ‘wizards’ to interpret technical charts, support and resistance avenues should be looked at today. Gold may even produce a rather tame range today. The precious metal finds itself around 1318.00 as of this morning and is exhibiting some rational movement.
What will take place this weekend will likely be more interesting than what will take place today, particularly if you are planning on leaving the office early. Equity markets globally have been rather cautious this week – and you can’t blame them – as they continue to wonder who they should trust. Wall Street has been lackluster, but it has been behaving this way since the beginning of August or thereabouts. As much as the media is talking about the government shutdown, it is has simply not caused a furor in the marketplace. It is also doubtful that Washington is going to produce an agreement this weekend on the budget. Politicians seem intent on continuing this drama up until the so-called deadlines which are more than ten days away. Drama is another way of getting face time on television.
So pardon our disregard of the doom so many are pointing towards regarding the American political saga. This shutdown is not the first, nor will it be the last, and while many point to the Republicans as being the instigators it needs to be said that it takes two to tango and the President has a responsibility to not only safe guard today but to think about the long-term.
Digital Markets Advisor apologizes for its idealism, but the reality is that at some point what will happen is that self-interest will take precedent and politicians will act in a way that allows them to stand up and proclaim to their constituents that they have acted with the public good in mind – this as many roll their eyes. This entire budget saga is frankly quite boring and absurd. Simply put the U.S. government is spending too much money and has a public policy which will harm the next decade economically if it continues on this path of trying to be ‘everything to everyone’.
At some point the word no is what needs to be said. No, we will not continue down this path to ruin – would be a good starting point to begin a conversation. But we are not counting on that. So while you don’t have the Jobless numbers today, you do have a soapbox to stand on and proclaim your discontent, unless you are planning on leaving your office early and going to the bar.