The Week Ahead: The Homestretch a.k.a Q4 2020

The Homestretch a.k.a Q4 2020 Share this story: David Atkinson Foreign Exchange Sales Manager The good news about this upcoming week?  We will have put three quarters of 2020 behind us.  The bad news?  Well, think about what we have coming up for the fourth quarter.  I remember after Covid first hit hard in March that we saw people putting holiday lights back up to try to remember how happy things were back in December.  I wonder if we will see holiday lights going earlier than usual as a sign of trying to get to the end of this year. Until then though, we will go week by week.  There is a load of critical data coming up this week.  In the U.S., I will be very interested in the consumer confidence data followed by the second shot at Q2 GDP on Wednesday.  It remains a gut punch to see data like -31.7%, but in this crazy year it is expected that we will have a huge rebound from these miserable levels once we start seeing Q3 numbers.  Thursday has income and consumption data and weekly unemployment claims data. All this gears up to Friday’s non-farm payrolls report.  Markets seem to be back to taking this data more seriously.  It was never that markets thought it unimportant, but in the throes of the lockdowns it was almost impossible to know what kind of crazy numbers would we get.  Market expectations were off by millions and this was treated as no big deal because everything was in such chaos. Outside the U.S. CPI data for Japan and Germany will garner a bit of attention.  Japan has its usual slew of important data, including retail sales, industrial production and the quarterly Tankan manufacturing survey.  We also get a look at euro area unemployment late this week.  Japan’s jobless rate is released on Friday as well. Outside of data releases, there are several important European meetings this week surrounding continued Brexit negotiations and the controversy over the Internal Market Bill. Dare I wonder what kind of unexpected events will happen this week, but Tuesday opens the 2020 debate season with the first face-off between Donald Trump and Joe Biden. Buckle up. If we can help you with any Foreign Exchange needs, please email foreignexchange@cnb.com or call (800) 447‑4133. Want to learn more about international finance, economics, and global events? Sign up for our other Foreign Exchange emails and videos! Follow City National Bank on social media: Non-deposit investment products: • Are not FDIC insured, • Are not deposits or other obligations of City National Bank and are not guaranteed by City National Bank, and • Are subject to investment risks, including possible loss of the principal invested. This report is for general information and education only and was compiled from data and sources believed to be reliable. City National Bank does not warrant that it is accurate or complete. Opinions expressed and estimates or projections given are those of the authors as of the date of the report with no obligation to update or notify of inaccuracy or change. This report is not a recommendation or an offer or solicitation to buy or sell any financial instrument discussed. It is not specific investment advice. Financial instruments discussed may not be suitable for the reader. Readers must make independent investment decisions based on their own investment objectives and financial situations. Prices and financial instruments discussed are subject to change without notice. Instruments denominated in a foreign currency are subject to exchange rate and other risks. City National Bank (and its clients or associated persons) may engage in transactions inconsistent with this report and may buy from or sell to clients or others the financial instruments discussed on a principal basis. Past performance is not an indication of future results. This report may not be reproduced, distributed or further published by any person without the written consent of City National Bank. Please cite source when quoting.

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