The forex market economic calendar has important economic events today related to only 2 currencies, the British Pound and the Australian Dollar. These 2 currencies, especially the British Pound is anticipated to have increased volatility.
The most important economic events for today to focus on are:
Australia NAB Business Confidence (August)
Time: 01:30 GMT
This monthly economic survey reflects business optimism and outlook, plus current business conditions, which can have a significant impact on the broader economy growth due to spending and investing of the businesses, and can also influence the rate of employment. Higher readings reflect increased business activity and optimism, which has the potential to increase economic growth, thus is positive for the Australian Dollar.
UK Consumer Price Index (August)
Time: 08:30 GMT
A monthly very important measure of the inflation, which tracks changes in the value of goods of services plus the buying power of the consumers. The forex market tracks closely the inflation readings of various countries, as higher readings often lead to tighter monetary policy or interest rate increases by the central banks. As the UK is in the process of Brexit, any significant rise of the inflation can act as supportive for the British Pound signaling a future interest rate increase by the Bank of England.
The expectation is for an increase of the inflation in August with a reading of 2.8% on a yearly basis, higher than the previous reading of 2.6%, while the monthly reading is also expected to show an increase with a reading of 0.5%, compared to the previous decrease of -0.1%. However the Core Consumer Price Index also released at 08:30 GMT is more indicative of the real inflationary pressures in the economy, as it excludes the volatile price changes of food and energy goods and services. It is also expected to show a marginal increase with a reading of 2.5%, compared to the previous reading of 2.4%.
UK House Price Index (July)
Time: 08:30 GMT
The monthly economic figure for the change in the selling prices of houses is also another form of inflation measure, and at the same time reflects the state of the housing market, with higher than expected readings being supportive for the British Pound as they indicate a strong housing market. Increased home prices lead to inflation but also signal a strong economy with increased consumer spending. The forecast is for an increase of 4.8% on a yearly basis, showing a decline from the previous reading of 4.9%.
