Financial markets are set to endure a volatile week of trade with economic data, central bank announcements, and political events all on the agenda. This is the final full week of trade before participants begin to wind down for the festive break, as a result, we could see some significant movements.
Brexit talks will be extended into this week as both sides agree to go the “extra-mile”. This was announced yesterday in a joint statement between the EU and UK, following a telephone call between Boris Johnson and Ursula von der Leyen. The pound has jumped higher as bets rise that a deal can in fact be struck.
Central bank announcements will also be in focus this week. The Federal Open Market Committee over in the US will feature on Wednesday with the Bank of England to follow on Thursday. Neither is expected to make any changes but the BoE may have something to say regarding the prospect of negative interest rates.
On the data front, December global flash PMIs are set for release. In the UK, inflation, employment, and retail sales are on the calendar. US retail sales will also feature this week.
8:24am, December 14th 2020
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