These are the most important economic events for today in the forex market, with an economic calendar including 2 major events, one related to the British Pound and the other to the Japanese Yen. Increased volatility could take place in the GBP and Yen pairs early in the morning and late at night today.
UK Gross Domestic Product (2nd Quarter)
Time: 08:30 GMT
This economic reading measures the overall growth of the UK economy, with higher than expected or rising figures indicating economic expansion, being positive for the UK economy and the British Pound. The GDP growth reflects also the broader health of the economy, with sustained higher readings reflecting inflation concerns. The forecast is for an unchanged reading of 1.7%, with any surprise negative or positive probably adding increased volatility for the British Pound.
US Initial Jobless Claims and Continuing Claims (Weekly readings)
Time: 12:30 GMT
These weekly economic readings reflect on a weekly basis important insights on the strength of the US labor market, with lower than expected or falling readings being positive for the US economy, as less people actually file for unemployment benefits, something which is a sign of a strong economy. The expectations are for a higher reading of 238k for the Initial Jobless Claims, compared to the previous weekly reading of 232k, and a marginally lower reading of 1950k for the Continuing Claims, compared to the previous reading of 1953k. Any surprises in the actual numbers can either appreciate or depreciate the US Dollar against other major currencies.
US Existing Home Sales (July)
Time: 14:00 GMT
This monthly economic reading reflects the US housing market conditions, the change of existing home sales, with increased numbers showing a robust housing market, which is especially important for the US economy. Strong or rising numbers are positive for the US Dollar, as the housing market is related to consumer spending and confidence, and therefore also to economic growth. The forecast is for a monthly increase of 0.5%, while in the previous month there was a decline of -1.8%.
Japan National Consumer Price Index (July)
Time: 23:30 GMT
This important economic reading measures the rate change of inflation, and higher than expected readings or rising ones can lead to future interest rate increases by the Bank of Japan. While not too very large or too low readings for the inflation are in economic theory good for the overall economy, a low level of inflation indicates economic growth, due to higher consumer spending and demand. In this respect if the reading for the Consumer Price Index is higher than expected, it could be supportive for the Japanese Yen due to the possibility of a future interest rate increase. The forecast is though for an unchanged reading of 0.4% on a yearly basis, which could be neutral for the Yen.Economic Calendar