The last trading day of the summer today has a rich economic calendar, with important economic news related to the Euro, the Canadian Dollar and the US Dollar, offering opportunities for currency pairs fluctuations.
These are the most important economic events which can move the forex market today:
German Unemployment Rate (August)
Time: 07:55 GMT
The expectation is for a figure of 5,7%, unchanged from the previous reading. A lower Unemployment Rate is always good for the economy, showing a stronger economy, and higher consumer spending, while there is an inverse relationship with the inflation rate
Euro-Zone Consumer Price Index (August)
Time: 09:00 GMT
A primary measure of inflation rate, the Consumer Price Index can move the Euro, especially if there is any positive surprise, meaning the actual reading is higher than the expected one, as it will signal inflationary pressures which can lead to future interest rate hikes by the ECB. The forecast for the monthly and annualized Consumer Price Index for the month of August is 1.4%, slightly higher than the previous reading of 1.3%. However the Core Consumer Price Index which excluded the volatile price changes of energy and food goods and services, and is more indicative of the real inflation rate is expected to remain unchanged at 1.2% on a yearly basis.
Canada Gross Domestic Product (June)
Time: 12:30 GMT
The monthly economic figure will show the actual growth of the Canadian economy, with higher or rising readings being positive and supportive for the Canadian Dollar, reflecting a strong economy at an expansion economic phase. The forecast on a yearly basis is expected to show a slowdown with a reading of 4.1%, lower than the previous reading of 4.6%. This slowdown is expected also on a monthly basis change with a reading of 0.1%, much lower than the previous reading of 0.6%. Any surprise however can move the Canadian Dollar.
US Personal Consumption Expenditure Core (July)
Time: 12:30 GMT
Personal consumption is very important for any economy, as it indicates both the level of optimism consumers have for the future of the economy, and current inflation pressures combined with economic growth. Higher levels of consumer spending lead to a higher level of GDP, and can spark inflation as well, so both a are positive for the US Dollar. The forecast is for a reading of 1.4%, a marginal decrease compared to the previous reading of 1.5% for the month of July and on a yearly basis. As the Fed is monitoring closely the inflation rate, any positive surprise in the form of a higher than expected figure, has the potential to move the US Dollar, as it will signal a stronger economy.
