One important factor that made its appearance again in the forex market and capital markets are the geopolitical tensions amid the U.S. and the North Korea, which had as a result the increased demand for safe haven assets and currencies, leading to higher prices for gold and the appreciation of the Japanese Yen against its major counterparts as USD/JPY moved lower. These geopolitical tensions are often unpredictable but important factors, which can move the forex market.
Today the most important economic news to focus and be both prepared and informed are the following five ones:
Australia Consumer Inflation Expectation (August)
Time: 01:00 GMT
The Consumer Inflation Expectation reflects the expectations of consumers about the future inflation rate in the next 12 months. Higher than expected readings or rising readings indicate that consumers expect a higher inflation rate in the future, which can lead to future higher interest rate hikes by the Reserve Bank of Australia, and are positive for the Australian Dollar. The previous reading was 4.4%. Higher than expected inflation without any interest rate increases by the central bank can lead however also to a depreciation of the currency.
Japan Tertiary Industry Index (June)
Time: 04:30 GMT
A monthly economic reading which measures the change in the output of service only sector for domestic needs. As Japan relies a lot on its services in terms of exports higher than expected readings reflect a stronger service sector, and higher domestic economic and business activity which is positive for the economic growth and the Japanese Yen. For the month of June the expectation is for a higher reading of 0.2%, compared to the previous negative reading of -0.1%.
Great Britain Industrial Production, Manufacturing Production, Construction Output and Total Trade Balance (June)
Time: 08:30 GMT
Several important economic news for the economy of Great Britain will be released, and which indicate the current state of Manufacturing and Industrial Production. Higher than expected or rising readings will be positive for the British economy and the British pound as will reflect increased levels of production, strong business activity and economic expansion. The same rules apply for Construction Output. The expectations for the month of June on a yearly basis are for higher readings and increased business activity for all three sectors of production. Any positive surprises in these readings could be supportive for the British Pound. Also the Total trade balance for the month of June is expected to show a lower trade deficit, which can also prove to provide support and demand for the British Pound as well.
Canada New Housing Price Index (June)
Time: 12:30 GMT
The New Housing Price Index measures the change in prices of houses, and reflects also the demand of the housing market. A strong reading indicates increased demand for houses, and is positive for the Canadian Dollar, as consumers will probably spend more, being confident about the future outlook of the economy.
U.S. Initial Jobless Claims and Continuing Claims (weekly reports)
Time: 12:30 GMT
Both these weekly economic reports show changes about the health of the U.S. labor market. Lower readings are positive for the U.S. Dollar as they indicate less people are filing for the first time for unemployment benefits, and also less people are receiving unemployment benefits as well. The most recent reading of non-farm payrolls was very strong and better than expected, so any positive surprise in these two readings could provide support for the U.S. Dollar. The expectations are for an unchanged reading of 240k for the Initial Jobless Claims and a lower reading of 1960k compared to the previous reading of 1968k for the Continuing Claims.
