A new trading week starts today and the economic calendar is very light, meaning that we should not expect any excessive volatility in the forex market, but rather a range-bound trading activity. These are the most important economic events for today Monday 21st August 2017:
Japan All Industry Activity Index (June)
Time: 04:30 GMT
A monthly economic reading which is reflective about the general health of the Japanese economy, as it takes into consideration various economic and business sectors, such as manufacturing, services and construction sectors. Higher or rising readings are positive for the Japanese Economy and the Yen as well.
The reading measures the monthly change in the total production by all these economic sectors. For the month of June the expectation is for an increase in the economic production with a reading of 0.4%, higher than the previous reading of -0.9%.Any positive surprise in the form of a better than expected figure could cause the appreciation of the Japanese Yen against other major currencies, reflecting strong economic expansion and growth in the economy.
Canada Wholesale Sales (June)
Time: 12:30 GMT
The monthly economic reading of change in the Wholesale Sales, is somehow indicative of the general state of the Canadian economy, as higher readings can often lead to higher consumer spending and consumption, and in the final end to a higher economic growth measured by GDP. It is a seasonally adjusted economic reading, and the expectation is for a decline of -0.2%, compared to the previous reading of 0.9%. Strong readings are positive for the Canadian Dollar.
A quiet economic calendar can present nevertheless other price action opportunities, by focusing on the commodities prices, with a strong oil prices rally on Friday, which could either continue or reverse, and depending on the outcome the USD/CAD pair could exhibit volatility, while gold prices could have an effect on the USD/CHF.
