After last week’s strong display of volatility, the next 5 days are nicely set up to see more of the same. The week ahead contains a mixture of economic data, central bank meetings, political events as well as developments on the pandemic front as Europe begins to witness potential second waves.
Both the Swiss National Bank and the Reserve Bank of New Zealand will hold meetings and announcements this week. Neither are expected to significantly alter monetary policy but their accompanying commentary will be keenly eyed. Elsewhere across the central banking world, we’ll see speeches given by the Bank of England Governor, Andrew Bailey, Madame Lagarde from the ECB, and Jay Powell from the Fed who’ll also be testifying to Congress on Tuesday.
Data wise, the main highlight comes on Wednesday with global flash PMIs. These represent data from this current month so are deemed as leading indicators and therefore have strong weighting. Both services and manufacturing numbers will feature from the UK, eurozone, and US.
Brexit tensions will no doubt be on many investors’ minds this week as we edge closer to key junctures, namely the EU’s end of the month deadline for the UK to end its intent to break the Withdrawal Agreement. This is then followed by the 15th October deadline from PM Johnson to have a deal outlined or he walks away.
Lastly, the pandemic will likely come back into focus as we get ever closer to traditional ‘flu season’ just as infection rates begin to jump dangerously higher. Speculation over the weekend suggests the UK may be in for another set of restrictions which follows after the government’s new policy of no socialising in groups of more than 6.
Have a good week.
Written by Viv Savani. 8:11am, September 21st 2020
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