A new trading month starts today with significant economic data related to the US and the Canadian economy. The USD/CAD is expected to have increased volatility, but also the US Dollar due to the non-farm payrolls is expected to present fluctuation against other currencies. The end of the trading week and the beginning of the new month has the potential to offer volatility and possible new trends forming in the forex market.
These are the most important economic events which can move the forex market today:
Japan Consumer Confidence (August)
Time: 05:00 GMT
The consumer confidence index for the economy of japan is expected to show a figure of 43.5, down from the previous reading of 43.8. Higher or increasing readings for consumer confidence are positive for the Yen, as they often lead to higher economic growth.
UK Markit PMI Manufacturing (August)
Time: 08:30 GMT
The monthly economic figure will show the level of economic and business activity for the manufacturing sector, with increased or higher readings being supportive for the British Pound indicating strength in the manufacturing sector. The forecast is for a reading of 55.0, marginally lower than the previous reading of 55.1.
US Non-farm Payrolls and Unemployment Rate (August)
Time: 12:30 GMT
After the Jackson Hall speech of Janet Yellen with no mention at all to the monetary policy, the forex market will monitor closely the reading of the US non-farm payrolls and the unemployment rate, as both readings can signal if there will be another interest rate hike by the Fed until the end of the year. Higher than expected or rising number for the non-farm payrolls and lower or falling number for the unemployment rate can support the US Dollar, indicating a strong labor market and economic growth. The forecast is for a reading of 180k for the non-farm payrolls, lower than the previous reading of 209k and an unchanged unemployment rate of 4.3%. Any surprise can move significantly the US Dollar.
Canada Markit Manufacturing PMI (August)
Time: 13:30 GMT
The monthly economic reading measures the strength of the manufacturing sector, with readings above the 50.0 indicating an expansion in business and economic activity, being positive for the Canadian Dollar.
US ISM Manufacturing (August)
Time: 14:00 GMT
As in the case of Canada, strong readings for the ISM manufacturing indicator are positive for the US economy and the US Dollar, reflecting a strong sector, but also providing expectations as well for the inflation and the state of the labor market. The forecast is for a reading of 56.5, marginally higher than the previous reading of 56.3.
University of Michigan Confidence (August)
Time: 14:00 GMT
This monthly economic figure measures the consumer confidence, one of the most important factor that have a large impact on the economic growth and reveal expectations about the future state of the economy. High readings are positive for the US Dollar, and the forecast is for a reading of 97.5, lower than the previous reading of 97.6.
