Focus slowly shifts towards the US jobs report tomorrow

Month-end flows and talks surrounding more economic stimulus were the two key factors at play yesterday, and that resulted in a weaker dollar and push higher for equities - though the moves were modestly faded towards the end of the day.

The new day is starting with more of the same as the greenback keeps lower while US futures are slightly higher, as investors hold out some hope of progress to be made.

Mnuchin and Pelosi are still hashing out their differences but the reality is that this should inevitably be heading to the dumpster at the end of it all.

It is a brand new month and brand new quarter but trading today may be more skewed towards the anticipation of the US jobs report tomorrow. But just be mindful of more talks and whispers surrounding the economic stimulus relief in Capitol Hill.

Looking ahead, there is little on the agenda in Europe to derail from that sentiment.

0630 GMT - Switzerland September CPI figures

Prior release can be found here. Swiss inflation is expected to keep more subdued and this will just mean that the SNB will maintain their current policy stance on intervening to limit the strength of the franc for some time still.

0630 GMT - Switzerland August retail sales data

Prior release can be found here. Swiss consumption activity continues to show signs of a modest rebound but there are still question marks on whether such an improvement can be sustained in the latter stages of the year. A minor data point.

0715 GMT - Spain September manufacturing PMI

0730 GMT - Switzerland September manufacturing PMI

0745 GMT - Italy September manufacturing PMI

0750 GMT - France September final manufacturing PMI

0755 GMT - Germany September final manufacturing PMI

0800 GMT - Eurozone September final manufacturing PMI

The focus is on the final readings in France, Germany and overall Eurozone. Factory activity has kept pace despite the slip in services sector activity amid the rise in virus cases, so the final readings here should just reaffirm more of what we already know. The readings over the next few months will be the more interesting points of observation.

0830 GMT - UK September final manufacturing PMI

The preliminary report can be found here. The UK economic recovery is losing a bit of steam although factory activity is still holding up as seen with the initial reading. The final reading here should just reaffirm more of the same narrative.

0900 GMT - Eurozone August PPI figures

Prior release can be found here. A lagging and proxy indicator of inflation pressures in the euro area. Not a major release by any means.

0900 GMT - Eurozone August unemployment rate

Prior release can be found here. It is tough to draw any conclusions from the jobless rate here as government furlough programs are still masking the true impact on labour market conditions in the region. The latest reading here will be no different in that regard.

1130 GMT - US August Challenger job cuts, layoffs

Prior release can be found here. As of last month, US-based employers have laid off the most number of workers in a calendar year (with still four months to go in 2020) as there are growing signs of temporary job losses turning more permanent in the coming months. The story from the report here should be more along those lines but more attention will be paid to tomorrow's non-farm payrolls number rather than the narrative above.

That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.