#1 US equities ended Friday’s trading with minor gains,
but worth mentioning the S&P closed above 2500 threshold. Overnight, Asian equities started the week on a strong footing with overnight gains around 0.5% to 1% on hopes the US seeks a peaceful resolution in the N-Korean issue.
#2 Today we have a very light data calendar with the final euro area inflation prints for August due out.
Later in the week the focus will be on the FOMC meeting on Wednesday, where we expect the Fed to announce that it will begin shrinking its balance sheet in October
#3 This week, focus for GBP will return to the case of Brexit, as Theresa May is set to speak on Thursday.
On Thursday, sterling jumped sharply higher as the BoE minutes revealed that a majority of MPC members expected a gradual withdrawal of monetary stimulus over the coming months. On Friday, BoE’s Vlieghe, a notorious dove, supported the call for a rate hike. GBPUSD had its best week in 9 years, rising from 1.3148 to over 1.3600.
#4 GOLD is suffering on the back of easing tensions from N. Korea.
Last month Gold was sought after since it benefits at times of geopolitical uncertainty however the lack of any provocation during this weekend further pushed the prices of the yellow metal down. GOLD was trading as high as 1339 last week before falling to 1314 at time of writing.
#5 U.S. crude oil prices rose above $50 per barrel on Monday
after hitting a three-month high of $50.50 last week, before paring gains modestly to around $49.95. Oil prices have been rising steadily for the past two weeks as investors assess the damage to the U.S. drilling and refining industry in Houston and the broader Gulf region in the aftermath of Harvey’s devastating winds and floods.