Today the economic calendar is light but the forex market will focus on the two speeches yesterday from the central banks, the ECB and the Bank of Japan. The comments from the Bank of Japan did not move much the Japanese Yen although the outlook was about lower inflation and increasing GDP growth in the future. The comments from the President of the ECB Mr Mario Draghi did move a lot the Euro, as it made a 2-year high against the US Dollar. The EUR/USD reached almost 1.1660 up from 1.1476 before the speech of Mr Draghi, who left the possibility to examine the bond buying program open in the autumn, and possibly to reduce it as of the end of the year, so in essence there could be a change in its monetary policy.
The most important economic news for today 21st July 2017 to focus on which could move the forex market are the following ones:
British Public Finances and Public Sector Net Borrowing (June)
Time: 08:30 GMT
These readings show the amount of money financed to the British Government, and lower readings are positive for the British Pound.
Canadian Consumer Price Index (June)
Time: 12:30 GMT
A measure of inflation with an expected reading of 1.1% lower than the previous reading of 1.3%. The Bank of Canada has a target inflation rate of 1%-3%, and any higher than expected reading will be positive for the Canadian Dollar, after the recent interest rate hike from the Bank of Canada.
Canadian Retail Sales (May)
Time: 12:30 GMT
Retail sales reflect consumer confidence and spending and are an indicator of future economic growth and inflationary pressures. Higher than expected readings are positive for the Canadian Dollar. The expected forecast is for a reading of 0.3%, down from the previous reading of 0.8%.Trade here
NOTE: This article is not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future.
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