Today there is a very rich economic calendar with important economic events for the Eurozone, the US economy and the Japanese economy, so there are high odds to witness increased volatility mainly for the EUR/USD pair.
These are the main economic events, which can move the forex market today:
Japan Nikkei Manufacturing PMI Index (August)
Time: 00:30 GMT
A monthly economic reading which measures the economic and business activity of the manufacturing sector, with readings above the 50.0 level reflecting an expansion. Higher readings indicate increased level for the manufacturing sector, and possibly higher future economic growth, and are positive for the Yen. The expectation is for a reading of 52.3, marginally higher than the previous reading of 52.1.
Germany Markit Manufacturing PMI Index (August)
Time: 07:30 GMT
As mentioned in the case for the Japan, the same applies for Germany, which is mainly an exporting and manufacturing country, so higher readings of the Manufacturing PMI are positive and supporting for the Euro, and the German economy, showing expansion and economic growth. The forecast is for a reading of 57.7, marginally lower than the previous reading of 58.1
Eurozone Markit Manufacturing PMI and Services PMI (August)
Time: 08:00 GMT
Half an hour later after the release of the Germany’s Markit Manufacturing PMI Index, there are the economic releases of the Markit Manufacturing PMI and Services PMI, showing a broader picture about the state of the Manufacturing and Services sectors in the Eurozone. Again higher readings or rising readings are considered positive for the Eurozone and supportive for the Euro, indicating expansion and economic growth. The forecasts are for a slight decrease in the reading of the Eurozone Manufacturing PMI at 56.3, lower form the previous reading of 56.6, and for an unchanged reading of 55.4 for the Eurozone Services PMI Index. Any surprises in the actual outcomes can have increased volatility for the Euro.
US Markit Services PMI and Manufacturing PMI (August)
Time: 13:45 GMT
After the Eurozone and the growth of the Manufacturing and Services sectors, more economic data is released for the US economy as well, so there will be an opportunity to assess if the Eurozone or the US present larger growths in these sectors, a direct comparison of their economic growth. As in the case of the Eurozone higher readings are positive for the US economy and supportive for the US Dollar, while negative surprises could cause the depreciation of the US dollar against other currencies. The forecasts are for a marginal increase of the US Markit Services PMI Index at 54.9, higher than the previous reading of 54.7, and an unchanged reading of 53.3 for the US Manufacturing PMI.
Eurozone Consumer Confidence (August)
Time: 14:00 GMT
The monthly economic reading measuring the Consumer Confidence in the Eurozone is very important, as high levels of consumer confidence lead to higher consumer spending and economic growth, while they reflect also increased optimism for the economy. Higher readings are supportive and positive for the Eurozone and the Euro, with the forecast to be a lower reading of -1.8, compared to the previous reading of -1.7.
US Crude Oil Inventories (Weekly)
Time: 14:30 GMT
The weekly report of US crude Oil Inventories can affect the oil prices and the USD/CAD pair, especially if there are positive or negative surprises. For example if the decline in the inventories is more than the expectations, then this is positive for the oil prices, as it indicates a strong demand for oil at current prices.
