On Monday and Wednesday, the key events for the common currency will be the speech of ECB President Christine Lagarde. Given the latest announcement by ECB official Villeroy that the ECB is likely to revise its inflation targeting concept, Lagarde will be expected to provide more details on this issue. Lagarde's speech is likely to be negative for the euro.

On Wednesday, the Eurozone CPI release for September is due, as well as employment data from Germany. The euro is likely to retreat further if deflation will be higher than -0.2% and the growth of unemployed in Germany above 9K.

China's manufacturing PMI from Caixin which is due on next Wednesday is likely to indicate increased activity in September, which will resonate with the EU and UK manufacturing rebound in September. The index is expected to change from 51 points in August to 51.2 in September.

The ADP report on Wednesday, as well as data on initial jobless claims on Thursday, will give an idea of what to expect from the NFP report on Friday. ADP is expected to rise by 650K and NFP by 920K. Readings below are likely to plunge the markets into depression as it will allow the fears of a second wave of Covid-19 that have beset the markets this week, to gain more attention from investors.

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