In the aftermath of intense geopolitical tensions again between North Korea and other countries, the Harvey hurricane estimations of damages and impact on oil prices and the turn to safe-have assets due to uncertainty, today the economic calendar has 2 major economic events related to the German economy and the US economy, which can impact the EUR/USD and its price action.
These are the main economic events for the forex market today to focus on:
Australia Building Approvals (July)
Time: 01:30 GMT
The monthly economic reading for the change of building approvals reflects the housing market conditions, with increased readings indicating a strong housing market, being positive for the Australian Dollar. The forecast is for a decline and a reading of -16.6% on a yearly basis, much lower than the previous negative reading of -2.3%.
Germany Consumer Price Index (August)
Time: 12:00 GMT
The German Consumer Price Index measures the inflation rate in the largest Eurozone economy, and is very important as higher than expected or rising readings can indicate possible future interest rate increases by the ECB, as measure to fight increased inflation. This is positive for the Euro. On a yearly basis the forecast is for a slight increase to 1.8%, compared to the previous reading of 1.7%, but on a monthly basis the forecast is for an increase of 0.1%, much lower than the previous increase of 0.4%.Any surprise can add volatility to the Euro.
US Gross Domestic Product (2nd quarter)
Time: 12:30 GMT
The economic measurement of the US economic growth, the GDP growth, reflects the overall strength and expansion of the US economy, with better than expected readings being positive for the US Dollar. Although the GDP growth can differ on a quarterly basis due to seasonality factors, the overall trend is more important as it indicates better the growth and any future interest rate increases if the main trend is up. The expectation is for an increase of 2.7% on an annualized basis for the 2nd quarter, higher than the previous reading of 2.6%, showing increased economic growth. Again any surprise in the actual reading could move the US Dollar.
US Crude Oil Inventories (weekly report)
Time: 14:30 GMT
With the financial and economic impact of the hurricane Harvey still unknown, this weekly report along with the following weekly report, can move the oil prices and the USD/CAD pair.
Japan Industrial Production (July)
Time; 23:50 GMT
The monthly measurement of the change of Industrial Production is extremely important for the overall picture of the Japanese economy, with a strong focus on industrial production, and any higher than expected readings are positive for the Yen, signaling a strong economy. The forecast is for a reading of 5.2%, slightly lower than the previous reading of 5.5%.
