The week ahead: G20 meet­ing in sharp fo­cus

Financial Mirror (Cyprus) - - WORLD - By Luk­man Otu­nunga, Re­search An­a­lyst at FXTM FXTM Brand: ForexTime Lim­ited is reg­u­lated

A sense of cau­tion is ex­pected to sweep across fi­nan­cial mar­kets in the week ahead as in­vestors tus­sle with trade dis­pute fears, Brexit-re­lated un­cer­tainty, Italy bud­get woes and de­pressed Oil prices.

Global eq­uity and cur­rency mar­kets are poised to be heav­ily im­pacted by geopo­lit­i­cal de­vel­op­ments with the G20 meet­ing in sharp fo­cus. The Dol­lar has the po­ten­tial to re­bound amid ex­pec­ta­tions of higher US in­ter­est rates and safe-haven de­mand.

In the United King­dom, Ster­ling’s out­look will de­pend on how in­vestors con­tinue to in­ter­pret the draft Brexit with­drawal agree­ment. The tra­jec­tory for Oil prices in the short to medium term points to fur­ther down­side on the back of ris­ing global sup­plies and signs of slow­ing de­mand.

The G20 sum­mit at the end of Novem­ber will be the main fo­cus across mar­kets, with in­vestors closely mon­i­tor­ing the sum­mit to see whether US-China trade ten­sions will be re­solved. Although a break­through deal is highly un­likely, any signs of both sides will­ing to talk fur­ther could ease trade ten­sion fears.

In the United States, there will be a spe­cial fo­cus on the sec­ond es­ti­mate GDP growth rate for Q3 on Wed­nes­day. Ex­pec­ta­tions over the Fed rais­ing rates fur­ther in 2019 are likely to heighten if GDP fig­ures beat ex­pec­ta­tion and the lat­est FOMC meet­ing min­utes are more hawk­ish than ex­pected.

For in­for­ma­tion, dis­claimer and risk warn­ing note visit: by CySEC and li­censed by the SA FSCA. Forextime UK Lim­ited is au­tho­rised and reg­u­lated by the FCA. FT Global Lim­ited is reg­u­lated by the IFSC

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