The EUR/USD as anticipated made a strong move on Friday 25th August 2017, gaining over 1.0% and clearing the 1.19 level, at a 2-year high price, after the speeches of the Fed chair Janet Yellen and the President of the ECB Mario Draghi. While both speeches made no specific references to any monetary policy changes, the participants in the forex market pushed the EUR/USD higher, and in general the US Dollar depreciated against the majority of its counterparts. With the EUR/USD at a new 2-year high price this week brings important economic events such as the US non-farm payrolls on Friday 1st September, which could result either in a reversal of this strong uptrend or to its continuation.
Today with a beginning of a new trading week, the economic calendar is light, with the following most important economic events to focus on for potentially new trends and currency market fluctuations:
US Advance Goods Trade Balance (July)
Time: 12:30 GMT
The monthly economic reading for Advance Goods Trade Balance measures the difference in value between imported and exported goods, with a surplus indicating more exports than imports, which in general is positive for the US Dollar reflecting strong demand for the currency. Also any lower readings or declines in the Trade Balance deficit are also considered positive for the US Dollar, again indicating increased demand for the currency. The expectation is for a reading of -$64.5 billion deficit, higher than the previous deficit of -$63.9 billion.
US Wholesale Inventories (July)
Time: 12:30 GMT
This monthly reading measures the number of inventories and unsold goods that wholesalers have in their position, and any lower readings or declines in the actual number are positive for the US Dollar reflecting higher consumer demand and probably higher future consumer spending as well. The forecast is for a reading of 0.3%, lower than the previous reading of 0.7%.
Japan Jobless Rate (July)
Time: 23:30 GMT
The monthly economic reading for Jobless Rate is important as lower readings indicate a larger amount of the labor force is workings, and this can lead to higher consumer spending and economic growth measured by the actual GDP. Lower or declining rates are signals of a strong economy and positive for the Yen. The forecast is for an unchanged reading of 2.8%.
