With all the truce talk underway in Gaza and Ukraine one would think that markets that have been influenced by political risk trading would be down today but instead gold, crude oil and JPY are all up today. This further reinforces that politics is a sideshow that creates a lot of short-term noise in the marketplace but has a limited longer-term impact. For the most part, markets are holding steady as traders position for the main economic announcements of the week which are coming up soon. Tonight brings the main basket of Japanese economic indicators. Tomorrow brings the first update to US Q2 GDP with traders looking for confirmation of the 4.0% reported last month. It appears that some traders had been speculating that political risks could ease driving gold and oil down recently and now that truces appear to be on the way, taking profits on short positions against news appears to be underway. Gold is holding on to yesterday’s gains as focus shifts back toward potential growth in the ECB balance sheet as it tries to stimulate a weak economy. WTI crude has been stabilizing from a selloff and may attract trading interest today later in the morning around US inventories. The USD has taken a day off from its advance and resource dollars (CAD, NZD, AUD) have capitalized on this to move to the top of the league standings. NZD is leading the charge on a trading bounce from oversold conditions after food price inflation went into negative territory. CAD is climbing on anticipation of Friday’s Canadian GDP and producer prices with traders looking for signs Canada may be starting to catch up to the US after falling behind lately. Stock markets are pretty steady today with traders taking a breather ahead of all the potentially market moving data due later in the week. The S&P continues to sit on 2,000 while the Dow remains stuck short of 17,150 and the Russell 200 consolidates yesterday’s rally near 1,175. Corporate News National Bank of Canada $1.20 vs street $1.01 Tiffany & Co $0.96 vs street $0.85, raises guidance to $4.20-$4.30 from $4.15--$4.25 Economic News Economic reports released overnight and this morning include: NZ food prices (0.7%) vs previous 1.4% Sweden consumer confidence 96.9 vs street 101.0 Sweden manuf confidence 106.7 vs street 101.0 Sweden trade balance SEK 1.9B vs street 3.8B Norway unemployment rate 3.3% vs street 3.2% Turkey interest rate decision 8.25% no change as expected Economic reports due later today include: 10:30 am EDT US crude oil inventories street (2.5 mmbbls)