Geo-politics continues to make headlines and investors returning to their desks from long summer holidays will have to weigh in with their sentiment. While equity bourses slid yesterday and have mostly been in the red today, do not be fooled into thinking that negative returns are because of the Ukrainian / Russian saga. It is most likely some investors worried about E.U. economic data and the chances that the ECB may again enter the realm of updating its monetary policy to reflect the concerns about poor growth.
Jobless data will start from the States today with the ADP numbers, the report was delayed a day because of the Labor Day holiday in the States this past Monday. Tomorrow the Non-Farm Employment Change numbers will come from the States marking the official results. Better numbers are expected and traders should look for any surprises.
Central Banks, including the ECB and BoE, are certainly being watched since they will soon make their pronouncements. The EUR continues to operate on the lower ends of its value against the USD. The support levels have been under constant pressure the past few weeks and have been broken several times, if the ECB issues new monetary policy again in the coming hour the Single Currency could see more volatility.
Traders should be using risk management wisely today.
Gold is trading near a consolidated low, the precious metal is around 1272.00 USD as of this writing and if the ECB plays with its interest rate more because of the recession like growth numbers from the E.U. look for the metal to have traders test its waters.
Crude Oil is also near lows. Considering the geo-political context the past few weeks, the prices in the energy sector have been stable and actually under pressure which highlights weakness in demand.