As we cross over into a new month and quarter in the second half of this week, participants will be faced with a barrage of economic data, culminating in Friday’s US employment report. Brexit negotiations will recommence this week, however, very few are forecasting any breakthroughs just yet.
The week ahead will see both month-end and quarter-end occur on Wednesday. Given how active FX markets have been at month-end recently, it can be expected we will see a surge in volatility as the corporate and institutional world rebalance their books for the new and final quarter of 2020.
Data-wise, as mentioned above, US non-farm payrolls will be the highlight on the data docket this week. However, there will also be a heavy focus around global September PMIs as well as final Q2 GDP reads. We’ll also have inflation metrics from the eurozone and the US.
Brexit will once again come back into focus as negotiations continue this week. While small glimmers of hope for a deal are seeping through, time is ticking and the pressure is on to see a breakthrough by the 15th October soft-deadline. If this week goes by with no positive developments then that little bit of hopes gets even smaller.
Have a good week.
Written by Viv Savani. 8:12am, September 28th 2020
The details expressed in this market report are for information purposes only and are not intended as a solicitation for funds or a recommendation to trade. Cornhill International Payments limited accepts no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the above information.