The week ahead – COVID-19, economic data and monetary policy at a glance



On the macro

It’s a relatively busy week on the economic calendar, with 49 stats at the center of the week ending 26e November. During the previous week, 60 statistics had been finalized.

For the dollar:

Earlier this week, the preliminary private sector PMIs for November will be the focus of discussions on Tuesday.

While we expect the services PMI to have the greatest impact, the subcomponents of the Manufacturing PMI will also have an influence.

Delivery times, pricing pressures and employment are likely to be key areas.

With US markets closed on Thursday, markets will need to be prepared for a data dump on Wednesday.

Key statistics will include jobless claims, basic durable goods, basic PCE price index and personal expenditure figures.

3e GDP figures for the quarter are also expected. Unless revisions to previous estimates, however, the numbers should have a moderate impact on the markets.

More influential, FOMC meeting minutes to be released on Wednesday

In the week ending 19the In November, the US dollar index rose 0.95% to 96.031.

For the euro:

The focus of attention will be on the eurozone’s flash consumer confidence figures on Monday. With consumption being the key to economic recovery, numbers tend to have a big impact.

Following news updates from EU member states on lockdowns, however, the optimistic figures may have a moderate impact.

The focus will then be on the preliminary private sector PMIs for November for France, Germany and the euro zone. We can expect interest in sub-components and cost pressures in particular.

In the 2sd half the week, the German economy will be the focus.

German business climate figures will spark interest ahead of 3 on Wednesdaye GDP figures for the quarter Thursday. Consumer sentiment figures for Germany will also influence Thursday.

For the week, the euro slipped 1.35% to $ 1.1290.

For the pound:

It’s a quieter week ahead on the economic calendar.

The preliminary private sector PMIs for November will be the key to the week. Expect the services PMI to have the biggest impact.

The pound ended the week up 0.28% at $ 1.3451.

For the loonie:

It’s a particularly quiet week ahead on the economic calendar.

There are no important statistics outside of Canada to provide direction for the loonie.

The loonie ended the week down 0.72% to C $ 1.2640 against the US dollar.

Outside of Asia

For the Australian dollar:

It’s a relatively quiet week ahead, with key statistics limited to new private CAPEX and retail sales figures.

Construction work done figures for the 3e quarter are also expected but should have a moderate impact on the Australian dollar.

The Australian dollar ended the week down 1.32% to $ 0.7235.

For the Kiwi-Dollar:

It’s a big week ahead.

On the economic data front, retail sales and trade data will be the center of attention.

The main event of the week, however, will be the RBNZ’s monetary policy decision on Wednesday. Will there be hikes in movement on the horizon to curb inflationary pressures?

The Kiwi Dollar ended the week down 0.57% to $ 0.7004.

For the Japanese yen:

November’s preliminary private sector PMIs will be the focus of attention on Wednesday.

Expect the services PMI to have the biggest impact ahead of Friday’s inflation numbers.

The Japanese yen fell 0.09% to 113,990 yen against the US dollar.

Outside of china

It’s a particularly quiet week ahead on the economic calendar.

There are no important statistics from China to guide the markets.

While there are no stats, the PBoC will be in action at the start of the week. However, the markets do not expect any movements in prime lending rates.

The Chinese yuan ended the week down 0.12% to CNY 6.3871 against the US dollar.

Geopolitics

Nothing new to consider in the coming week, with China and Capitol Hill continuing to be the main areas of focus.

COVID-19[female[feminine

News of the increase in new cases of COVID-19 and the reintroduction of lockdown measures will remain a key factor over the coming week.

Expect new foreclosure measures across Europe to further test support for riskier assets.

This article originally appeared on FX Empire

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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