Today the forex market economic calendar has important economic data related to the Australian, Canadian, and US economy, with a second monetary policy decision this week from the Bank of Canada this time. Adding the geopolitical tensions, and commodities prices which show increased volatility, there are plenty of economic news to focus on.
These are the most important economic events today, which have the potential to move the forex market:
Australia Gross Domestic Product (2nd quarter)
Time: 01:30 GMT
The growth rate for the economy measured by the change in the Gross Domestic Product is expected to show an increase of 1.8% for the 2nd quarter of the year, on an annualized growth rate, which if true will be marginally higher than the previous reading of 1.7%. On a quarterly basis the forecast is for an increase of 0.8%, higher than the previous reading of 0.3%. As the Reserve bank of Australia left yesterday the key interest rate unchanged at 1.5%, any positive surprise from the GDP growth can move the Australian Dollar. Higher readings for the GDP growth, are positive and supportive for the Australian Dollar, indicating expansion and growth in the economy.
German Factory Orders (July)
Time: 06:00 GMT
This economic reading measures the industrial activity and growth of the German economy, which has a strong focus on industrial production. Any higher than expected readings are positive for the German economy and the Euro, as they indicate higher demand. The forecast on a yearly basis for the month of July is a reading of 5.8%, higher than the previous reading of 5.1%.
Bank of Canada Rate Decision
Time: 14:00 GMT
The monetary policy decision can have a large impact on the Canadian Dollar, with any increase in the key interest rate making the currency more attractive offering a higher rate of return in the form of interest rate, and increasing its demand which should lead to its appreciation against other currencies. The forecast is for an unchanged key interest rate of 0.75, with any surprise adding further volatility and fluctuation for the currency.
US ISM Services/Non-Manufacturing Composite (August)
Time: 14:00 GMT
The monthly economic figure for the ISM Services/Non-Manufacturing Composite measures the change in the economic condition for the non-manufacturing sector, with any reading above the 50.0 level reflecting expansion and economic growth, being positive for the US Dollar. The expectation is for a reading of 55.5, higher than the previous reading of 53.9.
