As September begins many participants will be preparing for what could be a key month for financial markets. The Summer is over and it’s time for investors to decide when the Fed will begin to taper their asset purchases and what the effect will be on both financial markets and other global central banks.
Liquidity should return to usual following what can only be described as a boring August. Currencies traded within their well-defined ranges while equities continued their slow grind higher. Bond markets remained exceptionally calm and ignored much of the headline news.
As the 1st day of the month gets underway, the focus will be on this week’s US non-farm payrolls report and the implications it will have for Fed policy. First up we get the ADP report released today which will reveal how many jobs were created via the private sector in August. This could spark volatility as traders and dealers wage their bets for Friday.
Written by Viv Savani. 8:22am, September 1st 2021
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