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An expected rate hike next month has world markets in a holding pattern – but the US dollar is still strong.
Weakness in the UK pound from the Brexit vote, lower gold prices and the ECB's monetary policy will all be factors to watch in the fourth quarter.
The proposed Opec cuts will be bullish for crude prices in the short term, but the momentum will not last, as crude reserves are at a historic high and Russia is pumping at record levels.
Market participants have shown a heightened level of sensitivity to key releases from the US data docket, which continues to swing expectations of future Fed action.
Despite the broader swings in the performance of the dollar to the end of summer, the overall ranges have held true and the dollar trend remains unchanged.
The message emanating out of the US Federal Reserve has been mixed at best; while some in the bank remain dovish towards future rates others remain hawkish.
Markets opened this week on a positive note following Friday's stronger-than-expected US non-farm payrolls report.
Gold remains the safest long play among the asset classes and another move towards US$1,300, which remains a strong support level, will provide good value for a short term to medium-term long strategy.
The Leave vote which prevailed at the UK referendum left global financial markets in turmoil, but as the dust settles markets are now looking ahead to new developments that will steer them forward.
The most recent payrolls report was a disaster and will surely force the US Federal Reserve to have a long hard look at upcoming rate policy.
Since the markets are now pricing in zero action at the next Fed meeting, the dollar will now continue to trade in the range between 92.50 and 96.50 through to the next month.
The US Dollar Index, a measure of the dollar’s value against a basket of the world’s major currencies, dropped more than 1.5 per cent, snapping through a key support level of 93.60 to establish a new eight-month low at 92.80 levels.
Opec and other major oil producers failed to reach an agreement on freezing oil output levels, which dragged energy markets lower.
The pickup in economic activity in the US has been moderate, and the global economic situation makes the recovery sensitive.
This week will be key, as the release a host of price-related data in the US will test market sentiment once again.
