The market volatility continues with the pound still trading in a wide range, but ending the week close to levels week saw at the end of last week. The pound traded between 1.1025 and 1.1234 in this session, but much improved after trading at the all-time low for cable traded at 1.0350 on Monday. The euro has followed suit and consolidated towards the back end of the week, after inflation figures for August came out higher than expected. The expectation was for 9.7%, but CPI in the eurozone rose 10% year-on-year and led to the euro rising to .9850 this morning. The rand has been volatile during this week, but it seems comfortable trading back towards the R18.00 handle every time, and we find ourselves just below this mark as the week draws to a close.
The commodity sector has also benefited from the risk-off sentiment softening during the week, but gold still has a long way to go to get back to levels we are more familiar with. Brent Crude and WTI are down for the day, while copper and palladium end the week on a high. Treasury Yields in the US are lower across the board, with the 10yr yield quoted at 3.7% while the short-term 2yr yield is at 4.15%.
Next week is Golden Week in China, meaning their markets are closed for a whole week and could present an interesting scenario for the Yuan. During the course of the week their will be a lot of second-tier data being released, but main focus should be on the US payrolls numbers out next Friday.
