With Labor Day taking place in the United States expect to see thin volumes all of Monday. There will be PMI data from Spain and Italy shortly, but it will be unlikely to move the markets. A debate among the candidates for German leadership took place last night, but the results left no one bleeding. The EUR continues to trade at the lower realms of its short-term range and traders looking to take advantage of sudden movements in the Single Currency against the USD will have to be lucky. The EUR has also traded weaker against the GBP since Wednesday. The GBP has traded in a neat range against the USD and seems to have found short-term support for the moment against the Greenback.
Gold as of this morning is in a very consolidated short-term range. As of this morning the precious metal is near 1394.00. Like the FX markets traders who are want to participate in metals will have to acknowledge that the things may be a bit sleepy even in the London exchange.
Wall Street will be shuttered today because of the holiday and traders will contemplate its future direction considering the lackluster results made in August among the equity markets.
The crux of the situation is that we are in the final quiet days of trading for the summer. As of tomorrow when investors begin their slow crawls back to their offices they will shake the cobwebs from their heads and should be ready to take their gloves off as the markets start to move. News will likely take center stage for the next week while the U.S. Congress contemplates President Obama’s speech in which he outlined his desire to have ‘the right’ to use military action against Syria. Yet it remains to be seen if Congress will approve the President’s desire and pass a resolution that ‘allows’ force.
There will be data to chew on tomorrow as Spain releases their Unemployment numbers which will remain sobering, Construction PMI marks come from the U.K., and the U.S. sees the ISM Manufacturing PMI reading. And the week will end with a bang as the Non-Farm Employment Change numbers come from the States and the results are balanced against a crowded room of analysts who are lining up to give their thoughts on what the Federal Reserve will do on the 18th of September when it releases their FOMC Statement.
Enjoy one of the last lazy days of summer ladies and gentlemen.
- Robert Petrucci