Commodities began the week with a modestly upward bias as the IMF meeting over the weekend failed to resolve the currency tension. The Fed and some other central banks are prone to implement more easing measures to boost the economic recovery and the policies will intentionally weaken the countries' currencies. WTI crude oil price soared to 83.4 in Asian session amid the fragile prospect of the dollar. Strength in Asian stock markets also helped push the black gold higher. Gold advanced for a second day after a slump on Thursday. Currently trading at 1355, gold's uptrend remains intact. In the statement titled 'IMF Stepping Up Focus on Global Systemic Stability', the IMF's communique pledged to 'continue working collaboratively to secure strong, sustainable, and balanced growth and to refrain from policy actions that would detract from this shared goal'. Moreover, it said it would 'work towards a more balanced pattern of global growth, recognizing the responsibilities of surplus and deficit countries and address the challenges of large and volatile capital flows, which can be disruptive'. The statement unveiled financial chiefs' acknowledgement of the conflicts between both sides. Yet, little was agreed on how to deal with the issue. Speculations on further QE also intensified as US employment data were weaker-than-expected. Non-farm payrolls dropped -95K in September (consensus: +5K) while the decline in August was revised to -57K from -54K. Unemployment rate remained unchanged at 9.6%. Economists forecast the sluggishness in the job market should lead the Fed to increase Treasury purchases at the November meeting. According the UBS, the FOMC announcement will 'disappoint the bond market that has priced in aggressive new Treasury purchases'. HSBC commented the September report 'reinforced a weak overall picture for hiring activity in the US'. It keeps 'the Fed on track to unveil a purchase program to expand its balance sheet at the November meeting'. The focus this week will be on policymaker speeches and economic data that should frame expectations for the FOMC meeting in November. The minutes for the October meeting will be released on Tuesday, followed by Chairman Ben Bernanke's speech on Wednesday and Friday. A bunch of inflation data will affect policymakers' decision. Import prices and producer prices due on Wednesday and Thursday respectively will provide guidance on Friday's CPI reading which will be the most important data for the week. Commitments of Traders: Speculators were bullish on the energy complex in the week ended October 5 as speculations on Fed's QE weakened the dollar and raised optimism on future economic recovery. Net speculative long positions for crude oil futures surged +54 530 to 116 026 contracts, the highest level since April 2010. Net lengths for heating oil futures and gasoline futures more than doubled to 46 587 contracts and 59 183 contracts amid better tighter demand/supply outlook and price rallies during the week. The market remained a net seller of natural gas futures but net shorts declined for the first time in 9 weeks, by -13 545, to 170 258 contracts. The view toward precious metals was mixed with net lengths for gold futures and platinum futures increasing but those for silver and palladium dipping. Net length for gold climbed +1 971 to 259 620 contracts, compared with a -2 998 drop in net length for silver. Net length for platinum futures rose +547 to 23 649 contracts while that for palladium futures fell -231 to 15 359 contracts

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