Monday, 21 September 2020

On Monday, the most important event will be the speech of the head of the Fed, Jeremy Powell. It’s unlikely that we’ll hear something really unexpected, as the inflation announcement in Jackson Hole and the Fed meeting this week gave investors enough information about the Fed's plans and the Central Bank's desire to be open on the new inflation targeting concept (FAIT). Markets have adjusted their expectations to zero rates extended to 2023 with a slight retreat this week. A moderate positive effect on risky assets is expected from the Powell's speech.

Tuesday, 22 September 2020

On Tuesday, a speech by the head of the Bank of England Bailey is expected, at which the head of the Central Bank is to give more details on negative rates. We expect moderate negative reaction of GBPUSD to the comments of the BoE head. New Zealand's announcement is likely to pass largely unnoticed for the NZD, as the Central Bank has already outlined its plans to keep rates at low level.

Wednesday, 23 September 2020

On this day, European investors will keep tab on Germany’s manufacturing PMI release. It is expected that the report will indicate continuing moderate expansion of activity in the sector (especially among exporters), which should support the euro. Later that day, an API will release a weekly report on commercial crude oil reserves in the US. Chances are rising that API reading will fall short of projections due to the start of refinery maintenance season and the end of the travel season in the US.

Thursday, 24 September 2020

SNB is going make policy decision on Thursday. Monetary policy parameters are expected to remain unchanged. The bearish grip on USD is likely to intensify next week, allowing a retest of the major target at 0.90 in USDCHF.

Friday, September 25, 2020

The key event on Friday will be the US durable goods orders report. It will show how the demand for durable goods (expensive goods) of US consumers has changed compared to July. Monthly growth is expected to be 1.2% in August. The weak report, coupled with the deteriorating trend in US retail sales, could further exacerbate concerns about the momentum of the US economic recovery, which is signaling exhaustion.