Next week’s focus largely sits on Friday’s Nonfarm payrolls data as it marks the last official labour market report prior to the December Fed meeting. However, key data is also released from Switzerland, China, Turkey and Canada. In Switzerland, the SNB’s sight deposit data will be closely scrutinised given the low levels of EURCHF, while inflation and foreign investment data from Turkey will be closely watched given the elevated levels of TRY volatility. Meanwhile, economic activity data out of China should give an indication as to whether supply chains are starting to normalise while it will also add to the economic backdrop that currently points to further monetary loosening from the PBOC. Finally, GDP and labour market data out of Canada will prove somewhat influential for market pricing of the Bank of Canada. Outside of economic data, news about the spread, transmissibility and reduced vaccine efficacy of the new Covid strain from South Africa will prove highly influential for market risk appetite.
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Simon Harvey, Senior FX Market Analyst
Ima Sammani, FX Market Analyst