The U.S. economy's readiness - or not - for an interest rate rise is likely to once again take the global economic spotlight in the coming week, just a month before the U.S. presidential election. And many will also be watching the British pound - which took a pasting last week. Ciara Lee reports.
UK data is under scrutiny again - investors seeking reassurance over the resilience of the economy as Brexit pressure ramps up. Retail sales are expected to face a bruising after an unseasonably warm September. And UK inflation and employment numbers will also provide a glimpse into how the land lies under new leadership. Prime Minister Theresa May has indicated Britain could be heading for a "hard Brexit" in which it leaves the EU's single market in order to impose controls on immigration. The EU has toughened its stance against Britain over the future negotiations. (SOUNDBITE) (English) CIBC, HEAD OF FX STRATEGY, JEREMY STRETCH, SAYING: "I think the UK data backdrop is, I wouldn't say largely ignored, but I think investors will be increasingly mindful of some of the political dynamics and seeing how the UK establishment, and in particular the UK prime minister will respond to some of the moves we have seen in terms of sterling and or interest rates." It's not just Europe under political pressure. Markets are continuing to focus on the U.S. presidential race. (SOUNDBITE) (English) CIBC, HEAD OF FX STRATEGY, JEREMY STRETCH, SAYING: "If we were to see a Trump victory in the presidential election. What would that imply for geo-political and global trade trends? I think there are obvious headwinds still in place, but I think if we can look through some of those into 2017, I think there still the underlying backdrop is reasonably encouraging, I think the U.S. economic backdrop is still relatively supportive." Underwhelming U.S. jobs data on Friday muddied the outlook for world financial markets, with investors left questioning central bank policy as the election looms.