In terms of volatility risks, this week is extremely heavy with the focus on Brexit, key economic data, trade talks, and central bankers,
What to watch for over the coming days:
Central Banks:
- Reserve Bank of Australia will announce the rate decision on Tuesday, early morning. No change expected with rates at 150 bps.
- Bank of Canada (BoC) will announce the rate decision on Wednesday.
- European Central Bank (ECB) will announce the rate decision on Thursday.
Economic data:
- Global services PMI reports on Tuesday; China, EU, UK, U.S.
- China forex reserve and trade balance data due this week.
- Swiss inflation numbers on Tuesday.
- Australia Q4 GDP numbers on Wednesday.
- U.S. Trade balance, ADP employment reports due on Wednesday; Q4 GDP report on Thursday, and NFP report on Friday.
- Eurozone Q4 GDP report due on Thursday.
Geopolitics:
- U.S. Senate Foreign Relations Committee to hold a closed-door hearing on the status of the Magnistky Act investigation into the killing of Saudi journalist Jamal Khashoggi on Monday.
- China's annual People's Political Consultative Conference and National People's Congress begin on Tuesday; will proceed through the week.
Brexit:
- Negotiations over Irish backstop that could bind the United Kingdom in a Customs Union with the European Union, will continue through the week. British attorney-general will lead the negotiations with EU’s chief negotiator Michael Bernier. The result of this week would pave the way for voting on the revised agreement next week.


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