On the Macro

It’s a busy week ahead on the economic calendar, with 68 stats in focus in the week ending 16th October. In the week prior, 53 stats had been in focus.

For the Dollar:

It’s a relatively busy week ahead on the economic data front.

On Monday and Tuesday, September inflation and wholesale inflation figures are due out.

The focus then shifts to manufacturing sector activity and labor market numbers on Thursday.

Expect the Philly FED Manufacturing PMI for October and the weekly initial jobless claims to impact.

At the end of the week, retail sales and industrial production figures are due out, along with October consumer sentiment numbers.

Expect the retail sales and prelim Michigan consumer Sentiment figures to have the greatest impact.

Away from the calendar, the next Presidential debate on 15th October will also provide direction. That is assuming that Trump decides to attend…

The Dollar Spot Index ended the week down by 0.84% to 93.057.

For the EUR:

It’s also a relatively busy week ahead on the economic data front.

On Tuesday, ZEW Economic Sentiment figures for Germany and for the Eurozone are in focus.

Expect some EUR sensitivity to the numbers on the day.

The focus will then shift to Eurozone industrial production figures for August, due out on Wednesday.

At the end of the week, the Eurozone’s trade figures for August will also garner some interest.

Finalized inflation figures for member states and the Eurozone are also due out. Barring deviation from prelims, however, the numbers should have a muted impact on the EUR.

On the monetary policy front, ECB President Lagarde is scheduled to speak on a number of occasions in the week. Expect any forward guidance or views on the economy to influence.

Away from the economic

U.S. stocks finished lower Tuesday, after moving between small losses and gains throughout the session, ahead of the first presidential debate before the November election.

How did stock indexes perform?

The Dow Jones Industrial Average
DJIA,
-0.47%

fell 131.40 points, or 0.5%, to end at 27,452.66; while the S&P 500 index
SPX,
-0.48%

closed 16.13 points, or 0.5%, lower at 3,335.47, and Nasdaq Composite Index
COMP,
-0.29%

slipped
NQ00,
+0.66%

32.28 points, or 0.3%, finishing at 11,085.25. All three major equity indexes snapped three sessions of gains.

On Monday, the S&P 500 rose 53.14 points, or 1.6%, to end at 3,351.60. The Nasdaq climbed 203.96 points, or 1.9%, to close at 11,117.53. The Dow advanced 410.10 points, or 1.5%, finishing at 27,584.06, while booking its third session of gains in a row.

What drove the market?

After a positive start to kick off the final week of trading in September, major equity-indexes fell, with the global tally of COVID-19 deaths surpassing a milestone of one million.

Read: Coronavirus tally: Global deaths of COVID-19 top 1 million, 33.4 million cases and U.S. counts more than 250,000 deaths

The handling of the pandemic and plans for the U.S.’s economic recovery are topics on the roster for the presidential debate between Republican President Donald Trump and Democratic challenger, former Vice President Joe Biden in Cleveland Tuesday evening. The U.S. has the highest case tally at 7.1 million, and highest death toll at 205,085 of any country.

Investors will be looking for further guidance on new policy measures from Trump and more signs that Biden is prepared to take the reins as commander-in-chief, should he prevail in the November contest.

Overall, the debate which starts at 9 p.m. ET could help to set the tone for markets for the next 35 days until the