Today the forex market economic calendar is very rich, with 2 central banks interest rate decisions, the Swiss National Bank and the Bank of England, the unemployment rate in Australia, and the US CPI measuring the inflation rate and the weekly numbers about the labor market. With all these important economic news volatility is expected to rise for many currency pairs, offering potential trends continuations or reversals.
These are the most important economic events to pay attention to today, which can move the forex market:
Australia Unemployment Rate (August)
Time: 01:30 GMT
The monthly economic figure which measures the current labor market condition, is expected to show an unchanged reading of 5.6%, and an Employment Change of 20.0k, which is expanding but at a lower rate than the previous reading of 27.9k. Lower readings for the Unemployment Rate and higher for the Employment Change are positive for the Australian Dollar, reflecting a robust economy.
Switzerland Interest Rate Decision
Time: 07:30 GMT
The Swiss National Bank is expected to have the key interest rate unchanged at -0.75%, and the price action for the Swiss Franc is closely correlated to the gold prices, so both any surprise and any significant trend in gold prices have the potential to move the Swiss Franc.
UK Interest Rate Decision
Time: 11:00 GMT
In general interest rate increases lead to currencies appreciations as they offer a higher rate of return, but the Bank of England is forecasted to leave the key interest rate unchanged at 0.25%. The recent increase in inflation rate and decrease in the unemployment rate show a robust economy, increasing the odds of a future interest rate hike by the Bank of England, which will be positive for the British Pound. But even in the case of leaving the interest rate unchanged, the statement following the announcement can also move the Pound in the case of comments about the state of the economy and economic outlook.
US Initial and Continuing Jobless Claims (weekly numbers)
Time: 12:30 GMT
The weekly economic figures which provide insights on the labor market conditions, are important for the US Dollar, as the Fed is monitoring closely these numbers taking them into consideration for any future interest rate hikes. The lower the readings, the more robust is the labor market, leading to future higher economic growth, and being positive for the US Dollar.
US Consumer Price Index (August)
Time: 12:30 GMT
The monthly measurement of inflation rate in the US is expected to rise to 1.8% in August on a yearly basis, and to 0.2% on a monthly basis, increasing the odds for one more interest rate hike by the Fed until the end of the year. Although excessive inflation is almost never good for the economy, inflation at a moderate pace is good as it shows increased consumer spending and higher future economic growth. Any positive surprise in the form of higher than expected actual reading can be positive for the US Dollar and its appreciation against other currencies, increasing the odds for the Fed to raise interest rates soon.
