Gold At Record Highs

In many respects the currency markets will begin to trade in earnest today essentially where they left off on Friday discounting ranges. Many banks and bourses will be closed across Europe today because of Labor Day. However the United States will be open and will have normal trading. Taking into context the news that developed this morning regarding Bin Laden, the American markets may see some upside on Wall Street. But the currency markets with thin volume coming from Europe may continue to test the fortitude of investors. The USD finds itself still at the weaker end of its ranges against the EUR and GBP. The AUD battles at highs as Gold also is maintaining its volatile record territory. The U.S. will release ISM Manufacturing PMI numbers today.

Today figures to be an interesting day of trading taking into consideration the news that is developing. But it would be wise for traders to note that markets may face gyrations that find themselves largely finishing in the same place depending on ‘real’ impetus. The broad international markets will not return to normal volume until tomorrow. And then traders can expect that the big week of economic data and news that is on schedule to start to have their own effects. Jobless data will come from the U.S. later this week, and the ECB and BoE will hold monetary policy meetings and issue their statements.

Wall Street turned in another positive month of trading in April and the reaction of some investors continues to be cautious. The U.S. has shown more economic growth than their counterparts in Europe and the U.K., but fundamental data has not convinced everyone that America is out of the woods yet. In fact large questions continue to dominate the landscape regarding deficits, borrowing, and growth. In addition the rise in physical commodity prices should serve as a cautionary sign. Crude Oil is stubbornly high and its price is certainly causing nervousness among manufacturers and consumers.
Tomorrow the U.K. will release Manufacturing PMI figures and the U.S. will publish Factory Orders results. Wednesday will kick off the jobless parade data from the States as the ADP Non Farm Employment Change numbers are presented.

The JPY has been in an extremely consolidated range the past couple of sessions and this comes as Japan has had banking holidays too.

Last week produced swift currency and commodity markets as trading was effected by the FOMC Statement from the Federal Reserve and its ‘words’ were interpreted in a myriad of fashions. As May gets started traders have certainly seen plenty of action the past few weeks as the USD has weakened dramatically. It is likely that swift markets will continue.

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