Blog: The Week Ahead – Private Sector PMIs, COVID-19, Brexit, and Capitol Hill in Focus – FX Empire

In the 1st half of the week, prelim November private sector PMIs and consumer confidence figures are in focus.

Expect the Services PMI and CB Consumer Confidence figures to be the key drivers.

The focus will then shift to a particularly busy Wednesday.

Key stats include the weekly jobless claims, core durable goods orders, and personal spending figures.

2nd estimate GDP numbers for the 3rd quarter are also due out. Barring a marked deviation from 1st estimate, however, the numbers should have a muted impact on risk sentiment.

Other stats due out in the week include house price, trade, inflation, new home sales, and finalized consumer sentiment figures.

We don’t expect these to have a material impact on the Dollar, however.

On the monetary policy front, the FOMC minutes due out late in the week will also draw attention. Any contingency plans, in event of lawmakers failing to deliver an additional stimulus, would draw interest.

Away from the economic calendar, COVID-19 and U.S politics will continue to remain the key drivers, however.

The Dollar Spot Index ended the week down by 0.39% to 92.392.

For the EUR:

It’s a busy week ahead on the economic data front.

Prelim November private sector PMI figures for France, Germany, and the Eurozone are due out on Monday.

Expect plenty of influence from the numbers, with COVID-19 containment measures likely to hit service sector activity.

On Tuesday, the focus will shift to finalized GDP and November Ifo business sentiment figures from Germany.

With lockdown measures in place, the GDP numbers are unlikely to have too much influence.

On Thursday, German consumer sentiment figures are due out that will also draw plenty of attention.

At the end of the week, French consumer spending, inflation, and finalized GDP numbers are due out.

Expect inflation and consumer spending figures to have the greatest impact.

Eurozone consumer confidence and French jobseeker totals due out in the week should have a muted impact on the EUR.

On the monetary policy front, the ECB monetary policy meeting minutes are due out on Thursday. The markets will be looking for an indication of what policy easing measures are likely next month.

Away from the economic calendar, COVID-19 news updates will remain a key driver in the week.

The EUR/USD ended the week up by 0.19% to $1.1857.

For the Pound:

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

Prelim November private sector PMIs are due out at the start of the week. With lockdown measures in place, expect plenty of influence from the PMIs.

The Services PMI would likely have the greatest impact on the Pound.

Away from the economic calendar, the markets will be looking for some updates on Brexit.

The GBP/USD ended the week up by 0.65% to $1.3275.

For the Loonie:

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

There are no material stats due out of Canada to influence the Loonie in the week.

A lack of stats will leave the Loonie in the hands of COVID-19 news updates and crude oil prices.

The Loonie ended the week up by 0.32% to C$1.3095 against the U.S Dollar.

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