Plan your strategies for the trading week ahead with key insights from our team.
It’s been a challenging week for financial assets, as the crisis around Deutsche Bank hit risk sentiment heavily. But while the markets keep a close on developments, what other events are traders basing their trading strategy on next week?
Chinese Golden Week
In Asia, trading will be thin as China’s markets will be closed for a week for the National Day holidays starting on October 1st.
On Monday, manufacturing PMIs across the globe will be in focus. In the UK, manufacturing activity may have grown at a slower pace in September according to the consensus of 52.1 versus 53.3 previously, so sterling, gilts and UK-focused stocks will be one to watch. Any positive surprise of this kind could give a positive spin to the pound, which failed to convince buyers above the 1.30 level against the US dollar last week.
On Tuesday, the Reserve Bank of Australia will announce its policy decision and is expected to maintain the status quo at 1.5%, seeing as the bank has cut rates two times in the past five months. However, given the risk-off trading across the markets, we could expect a short-term bearish reversal in AUDUSD.
US NFP Preview
Last but certainly not least, US jobs data will be in focus on Friday. 175,000 is the magic number expected by the market for September’s report, after nonfarm payrolls increased just 151,000 in August. It will be the first of several key data releases between now and the Federal Reserve’s December meeting, that could offer some clues on the timing of the next interest rate hike.