Gold still trading in range and after short runs up it continues to face bears who take advantage of the lack of staying power. No inflation, no speculative power keep Gold weak and it will likely continue for a while.
The EUR has managed to have an interesting month. Weak after the ECB admitted that the E.U. economy is suffering more than ‘anticipated’ and acknowledging that their interest rate has been too high, the EUR actually managed to climb back a bit the past two weeks. Having said that the Single Currency continues to face headwinds.
Political, including military and civilian distress continue to make news. Ebola has caught all eyes as it has made inroads to Europe and North America, but it is still not breaking the bank or equity markets. However, simmering tension from Russia and the way it is treated by the West needs to be watched. Also the Hong Kong demonstrations should they grow would be wildly unsettling for investors who have proven nervous the past couple of weeks.
Global equity markets have been put under pressure no doubt and have shown some real cracks, but managed this week to retrace some ground. Next week will get interesting as the BoE and ECB take center stage.
Also it should be kept in mind that mid-term elections are nearing in the States and noted that Republicans look set to take advantage of an increasing disdain held for President Obama according to most polls.
FX markets will remain volatile next week as ranges are tested. Commodities particularly Crude Oil have been weak and are showing that worries about demand and the global economy are taking a toll. Recent poor economic news from China has also bolstered skeptics and there continues to be a crowd of investors/speculators who are wagering that the Chinese economy is much weaker than the government in Beijing is willing to admit.