Five world markets themes in the coming week

Oct 19 2013, 15:13 IST
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The five big themes that are likely to dominate thinking of investors and traders in the coming week and the scheduled events. (Reuters) The five big themes that are likely to dominate thinking of investors and traders in the coming week and the scheduled events. (Reuters)
SummaryThe dollar's sell off is likely to gather pace in the coming week against the growth-linked currencies.

financial markets. Some banks have already warned of a hit to their third-quarter revenues and this will be a theme as the earnings season gathers pace. Nordic banks report in the coming week, followed by Credit Suisse on Thursday and Deutsche and UBS the week after.

* Trading volumes take a hit from U.S. impasse, to hurt banks

* Foreign central banks scoop up Treasuries during debt ceiling fight

* SEB, Swedbank results Tues, Nordea Weds, Credit Suisse, Santander Thurs

5/ SOFT DOLLAR

The dollar's sell-off is likely to gather pace in the coming week, with weakness particularly pronounced against growth-linked currencies. U.S. bond yields have fallen and spreads between Treasuries and both German Bunds and UK gilts are moving unfavorably for the dollar. Implied volatilities are also low and with the Fed set to pump $85 billion a month into the economy at least until December, carry trades are likely to gather steam having under performed for most of the year. Also this week, policy decisions from the Swedish and Norwegian central banks will drive their respective currencies as UK GDP will the British pound.

* Dollar, default and Bretton Woods III

* Debt deal may encourage Asia's dollar craving

* Canadian, Turkish central bank decisions on Wednesday; Swedish, Norwegian central bank decisions on Thursday.

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