Erik Schafhauser Zürich Erik Schafhauser Zürich Erik Schafhauser Zürich

Morning BrewSeptember 20 20203

Morning Brew 1 minute to read
Erik Schafhauser

Senior Relationship Manager

Summary:  Fasten your Seatbelt

Good Morning

The Chinese Central Bank left the 1 and 5 year rates unchanged going in to the central bank frensy the next 48 or so hours. Last one up is the Bank of Japan which does not announce a time of the rate decision, usually we would expect it early Friday morning.

Fear of a higher for longer message by Jerome Powell tonight have caused yields to rise since yesterday and this has weighed on risk sentiment and equities gave up a little ground. Cause was a higher than expected Canadian CPI Print,  Gold and Silver retreated of yesterdays intraday highs and are at 1931 and 23.20. The USD Index is not moving significantly and is trading at 105.15.

EURUSD is holding below the 1.07 and USDJPY remains on course for the next BoJ intervention – this could be Friday but the BoJ is good for surprises.  UK Inflation was reported lower than feared this morning at 6.7% vs 7% expected, sending the GBP loser, temporarily more than 50 pips.

US Indexes gave up a little ground yesterday but to be honest the volatility remains too subdued for the news-heavy environment.

China is looking to stimulate the economy with a number of measures, our Redmond Wong summarized them here

The Instacart IPO was quite successful with the shares gaining 12%.

There is no solution ready in the negotiations for the US Debt ceiling, that will be a key topic for the next few days until a resolution is found.

Please find a list of the next Central Bank decisions and the expected outcomes. A more in depth analysis for Fed tonight and the BoE tomorrow is available from our Charu Chanana

Today 20:00: US Fed: 99% no action
Today  20:30 Powells Press conference

Today  23:00  Banco Do Brasil 97% for a 50 bps Cut

Thursday 9:30 Swiss National Bank  64% for a 25 BPS Hike Followed by News conference

Thursday 9:30 Riksbank Sweden 92% of a 25 BPS Hike

Thursday 10:00 Norges Central Bank 99% for 25 BPS Hike, Followed by News conference

Thursday 13:00  Bank of England 82% for 25 BPD Hike & Minutes of the Meeting

Thursday 13:00  Bank of Turkey 70% 350 BPS Hike

Friday : Bank Of Japan 97% no change

Remain nimble until the weekend and consider your risk levels – we have just seen in the GBP, traders are nervous and markets likely to move sharply on any surprises. Consider options for opportunistic positions to manage risks.

Key Events ahead:


- Data:  UK CPI, US FOMC Rate decision & press conference

- Data Australia GDP.  Swiss Sweden, Norway, UK and Turkey rate decision, US Initial Jobless Claims, Philly Fed and Home Sales,

- Data Japan CPI, UK Retail Sales, International PMI



The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (
Full disclaimer (
Full disclaimer (

Saxo Bank (Schweiz) AG
The Circle 38

Contact Saxo

Select region


All trading carries risk. Losses can exceed deposits on margin products. You should consider whether you understand how our products work and whether you can afford to take the high risk of losing your money. To help you understand the risks involved we have put together a general Risk Warning series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. The KIDs can be accessed within the trading platform. Please note that the full prospectus can be obtained free of charge from Saxo Bank (Switzerland) ltd. or the issuer.

This website can be accessed worldwide however the information on the website is related to Saxo Bank (Switzerland) Ltd. All clients will directly engage with Saxo Bank (Switzerland) Ltd. and all client agreements will be entered into with Saxo Bank (Switzerland) Ltd. and thus governed by Swiss Law.

The content of this website represents marketing material and has not been notified or submitted to any supervisory authority.

If you contact Saxo Bank (Switzerland) Ltd. or visit this website, you acknowledge and agree that any data that you transmit to Saxo Bank (Switzerland) Ltd., either through this website, by telephone or by any other means of communication (e.g. e-mail), may be collected or recorded and transferred to other Saxo Bank Group companies or third parties in Switzerland or abroad and may be stored or otherwise processed by them or Saxo Bank (Switzerland) Ltd. You release Saxo Bank (Switzerland) Ltd. from its obligations under Swiss banking and securities dealer secrecies and, to the extent permitted by law, data protection laws as well as other laws and obligations to protect privacy. Saxo Bank (Switzerland) Ltd. has implemented appropriate technical and organizational measures to protect data from unauthorized processing and disclosure and applies appropriate safeguards to guarantee adequate protection of such data.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc.