Today there are important economic events in the forex market related to the Euro and the US Dollar, so the EUR/USD is anticipated to exhibit increased volatility, but as always other economic trends such as the commodities prices of oil and gold, can affect the sentiment towards risk and also the price action of other currency pairs.
These are the most important economic events today which can move the forex market:
Euro-Zone ZEW Survey and German ZEW Survey (September)
Time: 09:00 GMT
This monthly economic survey measures the economic sentiment and optimism or pessimism about the future economic outlook of the Euro-Zone and the German economy, with higher than expected or rising figures indicating increased optimism about the future state of the economy, which is positive and supportive for the Euro. Although the forecast is for only a six-month period, this forecast is significant enough and can move the Euro, especially in the case of any positive or negative surprises and a large difference in the actual figure from the expected one.
US Housing Starts and Building Permits (August)
Time: 12:30 GMT
These 2 monthly economic figures measure the state of the housing market as they provide insights on the number of new houses built and new houses under construction, with strong numbers reflecting a strong housing market, increased consumer spending, and most probably higher future economic growth. Higher than expected numbers are positive for the US Dollar, and the forecasts are for an increase in the Housing Starts with a reading of 1.7%, higher than the previous reading of -4.8%, but also for a decline in the Building Permits with a reading of -0.8%, while the previous reading showed a bigger decline of -4.1%.
Japan Merchandise Trade Balance Total (August)
Time: 23:50 GMT
In economic theory a trade surplus in the Trade Balance is positive for the local economy, in our case Japanese economy, as it shows higher amount of exports than imports which means a stronger demand for goods and services paid in Japanese Yen, which should be positive and supportive for the Japanese Yen. Japan has a positive trade balance surplus, and the reading for the August is expected to be at ¥97.0b, much lower than the previous reading of ¥418.8b.Trade here
NOTE: This article is not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future.
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