{"id":158061,"date":"2019-10-21T10:18:24","date_gmt":"2019-10-21T14:18:24","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=158061"},"modified":"2019-10-21T10:18:24","modified_gmt":"2019-10-21T14:18:24","slug":"weekly-market-outlook-all-eyes-on-brexit","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/10\/weekly-market-outlook-all-eyes-on-brexit\/","title":{"rendered":"Weekly Market Outlook: All Eyes On Brexit"},"content":{"rendered":"
October 21, 2019<\/div>
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By <\/strong>Orbex<\/strong><\/a><\/p>\n

The economic data for the week ahead will be likely overshadowed by the\u00a0Brexit developments<\/a>. After months of stalemate, there seems to be some kind of progress.<\/p>\n

But hopes diminished quickly after\u00a0UK lawmakers voted down the deal on Saturday. This means the UK will seek an extension to Brexit. The UK government sent a letter to the EU to formally seek an extension to Brexit to 31 January 2020. The situation remains fluid for the moment.<\/p>\n

The US-China trade deal has taken a backseat after the initial euphoria which saw equities rising. Both sides now have an incentive to close the limited phase one deal. Investors expect the deal to be closed any time before the middle of November.<\/p>\n

On the economic front, data is sparse with the exception of the ECB\u2019s monetary policy meeting. This will be Mario Draghi\u2019s final monetary policy meeting as he makes way for\u00a0Christine Lagarde.<\/a><\/p>\n

Investors will, therefore, brush aside any economic data from the eurozone.<\/p>

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Here\u2019s a brief look at the key economic events coming up for the week ahead.<\/p>\n

A Somewhat Busy Week for the Eurozone<\/strong><\/h2>\n

Data from the eurozone this week be mixed with the ECB\u2019s monetary policy meeting, which is the main event.<\/p>\n

On the economic front, some flash PMI\u2019s are due over the course of the week. Investors will likely overlook this data against the ECB\u2019s meeting.<\/p>\n

Eurozone Flash PMIs to Rebound<\/strong><\/h3>\n

In September, PMIs fell across the globe. The pace of declines was also significantly higher than the forecasts. Investors are hopeful that activity across manufacturing and services will pick up.<\/p>\n

As a result, there is scope for both the PMIs to rise slightly off September\u2019s decline. But one month\u2019s data isn\u2019t going to do much for investors.<\/p>\n

Not Much to Expect from the ECB<\/strong><\/h3>\n

The European Central Bank\u2019s monetary policy meeting this week will not likely spring any surprises. The ECB already announced its restart of the bond purchases.<\/p>\n

The asset purchase program is due to begin on November 1st<\/sup>, while the tiering will start from the end October. Investors do not expect to see much on monetary policy at this week\u2019s meeting.<\/p>\n

The economic outlook for the eurozone turned weaker since the announcement made a few months ago. However, with the trade outlook improving and the possibility of a Brexit solution, markets will be looking forward with some optimism.<\/p>\n

This ECB meeting will also be the last monetary policy meeting under Mario Draghi\u2019s leadership.<\/p>\n

A Slow Week for the USD<\/strong><\/h2>\n

There isn\u2019t much happening from the United States this week. Economic data stands out only with the release of the durable goods orders report mid-week. The remainder of the week will see the flash PMIs from Markit.<\/p>\n

There are also no Fed speeches lined up as the FOMC meeting is due in a week\u2019s time. Therefore, the blackout period will add further calm to the markets.<\/p>\n

Durable Goods to Decline in September<\/strong><\/h3>\n

US durable goods orders are set to continue with the bearish trend. The data for September is forecast to show another slow month. For September, headline durable goods orders are due to fall by 0.5%.<\/p>\n

Meanwhile, core durable goods orders are set to fall by 0.2%. This comes after a slow pace of increase in the previous month. Durable goods orders were weak in August and could be lower in September.<\/p>\n

Flash PMI\u2019s to Remain Somewhat Stable<\/strong><\/h3>\n

IHS Markit will be releasing the monthly flash PMI figures this week. The manufacturing and services PMI are to\u00a0largely\u00a0remain stable for the month of October.<\/p>\n

The US manufacturing and non-manufacturing PMI from the Institute for Supply Management both fell in September. Particularly, the manufacturing PMI fell below the 50-index signaling contraction.<\/p>\n

If the declines in the sector are strong, then Markit\u2019s data could also see some contraction.<\/p>\n

By <\/strong>Orbex<\/strong><\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Orbex The economic data for the week ahead will be likely overshadowed by the\u00a0Brexit developments. After months of stalemate, there seems to be some kind of progress. But hopes diminished quickly after\u00a0UK lawmakers voted down the deal on Saturday. This means the UK will seek an extension to Brexit. The UK government sent a […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-158061","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/158061","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=158061"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/158061\/revisions"}],"predecessor-version":[{"id":158067,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/158061\/revisions\/158067"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=158061"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=158061"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=158061"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}