Yesterday in many ways was the bookend for the summertime holidays. Large financial houses will start to return to full schedules and over the next week volumes will climb and start to look normal. What will be in question almost immediately are the lofty heights of equity bourses and the scepticism that surrounds many of their values.
The EUR continues to hover near support levels and should be watched carefully over the next few days as trading volumes begin to climb. PMI data came from Europe yesterday and the U.K. and was largely lacklustre to outright disappointing. The German Final GDP numbers also highlighted recessionary pressures.
The U.S. and Canada return from their holidays today. The States will bring forward the ISM Manufacturing PMI reading. China later tonight will bring forth the Non-Manufacturing PMI and Australia a bit later will publish its GDP data.
Gold essentially has started this week on important support levels. Without a hint of inflation in the air or within economic reports it will be up to speculators to try to create gains within the precious metal. As of this writing Gold is near 1277.00 USD.
The USD continues to garner attention from traders, but they should be aware of the saying that markets are seldom one way streets. Certainly the Greenback has shown that it was capable of summertime gains, but the question is what will happen in the fall? European data has certainly been weak and the Single Currency would be happily accepted by the ECB and many E.U. nations with a weaker value. But how long will the Fed allow the USD to get stronger and threaten its own export market which is considerable?
Traders also need to note that this Friday the Non-Farm Employment Change numbers will be published from the States. The report is likely to be more noise than substance, but investors may be looking for excuses to reverse positions as they return in earnest to their offices. Volumes are still relatively light, but things are bound to start picking up. Geo-political affairs also will remain in focus over the next few days, but investors are likely to consider the Ukraine and Russia crisis ‘old news’ even though new challenges are emerging every day via the conflict.