Today the economic calendar has important economic events, which can move the Euro, the Canadian Dollar and the US Dollar, but during the end of the week there is also the very important 2-day annual Jackson Hole Policy Symposium, hosted by the Fed in Kansas City, where both the president of the ECB Mr Mario Draghi, and the chair of the Fed Mrs Janet Yellen will speak. Any comments and statements about future monetary policy, economic growth, and other related economic factors, can increase the volatility for the Euro and the US Dollar towards the end of this week, and maybe early next week as well.
These are the most important economic events for today, to focus on and be prepared for any significant price action moves:
Switzerland Trade Balance (July)
Time: 06:00 GMT
The Trade Balance for Switzerland is a very important economic figure, with a trade surplus indicating more exports than imports, higher demand for the Swiss Franc, which in theory could mean an appreciation for the Swiss Franc against other major currencies. The previous reading was a trade surplus of 2.81 billion Swiss Francs. Any positive surprise with a higher reading is positive for the Swiss Franc.
UK Public Sector Net Borrowing (July)
Time: 08:30 GMT
The monthly economic reading of Net Borrowing by the UK government is important, with increases in Net Borrowing levels generally being negative for the British Pound, although they can lead to stimulation of the broader economy as well. The forecast is for an increase of 0.3 billion Pounds, much lower than the previous reading of 6.3 billion Pounds.
German ZEW Survey (August)
Time: 09:00 GMT
This monthly economic reading has a very important impact on the Euro, as it measures a medium-term forecast for the German economy, a six-month economic outlook. Higher than expected or rising readings are positive for the German economy and the Euro, indicating higher business and economic optimism. The forecast is for a reading of 15.0, lower than the previous reading of 17.5. Any surprise positive or negative can add volatility to the Euro against other currency pairs.
Canada Retail Sales (June)
Time: 12:30 GMT
The monthly measure of Canadian Retail Sales can move the Canadian Dollar, as higher than expected or increasing Retail Sales reflect a strong consumer spending and confidence for the future state of the economy, and higher economic growth. A better than expected reading can be supportive for the Canadian Dollar with the forecast to be an increase of 0.2%, lower than the previous reading of 0.6%.
US House Price Index (June)
Time: 13:00 GMT
This monthly economic reading measures the change of single-family house prices, and higher or increasing readings indicate a strong housing market and increased demand, with inflationary pressures. In this respect increased or better than expected readings are positive for the US Dollar, reflecting a strong housing market with caution to the inflation, as sustained increasing prices can lead to an overheating of the US housing market and possible future interest rate hikes by the Fed. The forecast is for an increase of 0.5%, a bit higher than the previous reading of 0.4%.
