Plan your strategies for the trading week ahead with key insights from our team.
The US presidential election is the main course on next week’s menu.
Looking forward to next week, activity in the FX, stock and bond markets are expected to be subject to two-sided volatility. We do expect to see some position adjustment and final tuning in investor portfolios. This could generate unexpected, hectic and short-term swings. For risk lovers, there will be enough opportunities on the US dollar pairs, US stocks and the US sovereign markets, but the use of risk management tools, such as stop losses, are crucial both pre and post the high-risk event.
Also on the agenda, UK manufacturing and industrial production data for September is due on Tuesday. If the data meets the optimistic market expectations, we could see a further advance in the pound against its major peers.
Finally in Asia Pacific, China’s trade data and inflation figures will be closely monitored, as will the Reserve Bank of New Zealand’s central bank rate decision. The RBNZ is expected to cut its official target rate by 25 basis points to 1.75% on Wednesday, which could prevent the Kiwi from benefiting from a potential improvement in global carry appetite.