Week Ahead: Focus to be on G20 Meeting and Brexit

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The biggest focus among investors this week will be on the G20 meeting, which will take place in Argentina. While the expectations for this week’s meeting are low, investors will pay close attention to them. This is because of a meeting that will take place between Donald Trump and his counterpart, Xi Jinping. Investors hope that a deal will be reached between the United States and China. While this is not likely, there are hopes that a compromise or détente will be reached. The reason for this is that in the past few weeks, the US markets have tanked. Trump follows closely the happenings in the stock market. Therefore, to help the markets recover, he might reach an agreement that will likely see the halting of the tariffs set to go on in January. As such, with the US and China suffering, there is a likelihood that the two countries will make a small deal intended to calm the market.
In the United Kingdom, it will be a tough week for Theresa May as she tries to make a deal with the parliament. This comes after the European side passed the deal. It has however faced increased opposition by conservatives in parliament. Already, more than 90 conservative MPs have announced their opposition for the deal. Further, a number of May’s cabinet members have not endorsed the new deal fully. Over the weekend, a report from the National Institute of Economic and Social Research found that the deal will cost between £700 to £1,100 per year per person. The research also found that this cost will be a bit limited compared to a full crash by the EU that leads to no deal. However, this research is being taken with a grain of salt because the research firm that carried it has campaigned for another referendum.
Investors will also focus on Germany. Two months ago, Chancellor Angela Merkel said that she will not vie in the next election. This has seen many politicians rush to fill her seat. In recent weeks, politicians looking to succeed her have continued to campaign. On economic data, investors will pay close attention to the German business expectations and business climate data, which will be released today. The ifo Business Climate index is expected to drop to 102.3 from last month’s 102.8. The business expectations number is expected to drop to 99.2 from the previous month’s 99.8.
Investors will continue to watch out for the crude oil market. In the past months, the price has been on a free fall. The price has fallen by more than 20% from the YTD’s high. Brent has fallen from $86 to $59.94. Today’s price is slightly higher than Friday’s low of $58.6. One of the biggest reasons why the price has fallen is the increased production from the US. Recent data has continued to show an increase in inventories. This volatility is likely to continue this week after investors wait for a decision from the OPEC meeting that will happen next month.
Other important data that will be released this week will be the minutes of the Fed meeting, US consumer confidence numbers, statement from the Fed, ECB, and RBNZ bank chairs, second reading of the Q3 GDP numbers, and Japan CPI.
The post Week Ahead: Focus to be on G20 Meeting and Brexit appeared first on Forex.Info.



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