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|Includes: Randgold Resources Limited (GOLD), OIL, USD


The USD went into the weekend with a weak stance after faltering again versus the EUR and GBP. The overhang that exists from the belief that the Federal Reserve may initiate another round of quantitative easing continues to roil the currency markets globally. October started with mixed data as the Revised Consumer Sentiment reading beat expectations slightly, but the ISM Manufacturing PMI missed its estimated mark. Today Pending Home Sales and Factory Orders are on the calendar from the States. While investors will certainly look at the housing data, traders know that this week includes the Non Farm Employment Change numbers on Friday and therefore the jobless data will take center stage.

Now that October is underway, investors will also face a barrage of political rhetoric going into the crucial Congressional elections that will be held in early November. Though it is doubtful any major shifts in policy will come this month as politicians will likely remain as moderate as possible before the vote, investors will certainly gear themselves to the underlying dimensions that resonate from any speeches from Federal Reserve officials. The jobless data this week will be crucial also and is certain to create a sounding board for various discussions and debates. Tomorrow the ISM Non Manufacturing PMI results will be released. The U.S., like their counterparts have provided mixed economic results the past few week, but Wall Street has managed to remain relatively calm and turn in gains. The USD has found itself battered the past few weeks and is now at the weakest parts of its range versus many of the major currencies.


The EUR continues to find strength under a dollar centric shadow. The European Union has been consistently providing mixed economic results like their counterparts, but the last few weeks has seen sentiment shift away from a focus on the debt and austerity pitfalls that are part of the E.U. landscape and center on a possible move by the Federal Reserve in the States. Europe will issue its broad Sentix Investor Confidence reading today and a mark of 8.3 is expected. Tomorrow Final Services PMI data and Retail Sales outcomes will be published.  However it is likely that the EUR will continue to trade within the boundaries of a dollar centric tide this week, particularly with the American jobless numbers on the horizon. The EUR has done remarkably well as it has taken a strong pose the past few weeks and until a shift comes about in investor sentiment traders are likely to find more tests.


The Sterling has found a remarkably stable avenue in recent trading as it has trended higher against the USD. Data from the U.K. has been lackluster, but the rather weak outcomes have not put a dent in the GBP. Today Construction PMI will be released and is estimated to have a result of 51.6, which would be below the previous month’s mark. Tomorrow the Services PMI will be brought forth and the Halifax HPI is tentatively waiting in the wings. While the Sterling has enjoyed a steady climb in value the past few weeks, the reasons for this are not exactly because the outlook for the U.K. economy is so bullish. The dollar centric trading sentiment that pervades most of the broad markets has definitely has an effect on the GBP and this story will remain the same until a new focus is found.


Both the JPY and AUD remain very interesting for a variety of reasons. The JPY finds itself at the strongest parts of its range as the effects from the BoJ have NOT produced its desired result. The JPY did in fact trade to the weaker side of its range immediately after the intervention, but has since been drawn like a magnate back to its stronger values. The AUD remains strong as it mirrors the happenings within the Gold price. The precious metal has maintained the highest parts of its momentum and finds itself standing at the center of attention going into this week as investors look at physical assets with a possible speculative flair.