FX Market Drivers: Eventful week ahead. We recommend short-term BUY of NOK and SEK. Place a sell order for EURUSD

Today and tomorrow will see a lot of economic indicators from the US.

Due to the shutdown of government in the US for more than 14 days, a string of economic

indicators have not been announced since 1 November. They will now be announced. The importance of these economic indicators may be questioned – not until December (November economic indicators) will the indicators be more unaffected by the debt ceiling agreement and the shutdown of government.

Equities: New all-time-highs. The week begins on a positive note. Asian equities came off to a good start of the week when they rose by 0.7% and in Shanghai equities rose by 1.3%. US equity futures are marginally into positive territory.

Last week we offered a ‘status’ on the economy and the financial markets. We concluded that there is still scope for further increases in risky assets and that we primarily see value in emerging markets (however, only in the 3-month term). Also, right now MXN is a currency that we have a positive view on – even though on Friday this week the central bank will lower its interest rate.

This week’s focus: Thursday may be interesting (bold print = most important)