The new trading week in the forex market starts with a light economic calendar, and low to moderate volatility is expected, and moderate price action for the major currency pairs. Later during the week there are two important central banks interest rate decisions, from the Reserve Bank of Australia and Reserve Bank of New Zealand, which should provide volatility for the Australian and the New Zealand Dollar.
These are the main economic events for today in the forex market:
European Session
- Germany Factory Orders, Markit Services PMI
Time: 07:00 GMT, 08:55 GMT
Changes in the largest economy of the Eurozone, Germany have a significant impact on the Eurozone economy, and the Euro. The forecast for the factory orders on a monthly basis is a reading of -1.5%, a decline compared to the previous reading of 3.6%, while the services sector is expected to expand at a marginal lower growth rate, with a reading of 55.2 versus the previous reading of 55.6.
- Eurogroup Meeting
Time: 08:00 GMT
Important event for economic conditions, financial decisions in the Eurozone.
- Spain Markit Services PMI, Spain Consumer Confidence, Switzerland Inflation Rate, Italy Markit/ADACI Services PMI
Time: 08:15 GMT, 08:45 GMT, 09:00 GMT
Higher than expected or rising figures for the Purchasing Manager’s Index (PMI), reflect expansion and increased economic, business activity in the services sector, being positive for the Eurozone economy and the Euro. The forecast is for a marginal decline for the reading of Services PMI for the economy of Italy, but for a larger decline for the figure of Services PMI for the economy of Spain, which can be interpreted as neutral to negative for the Euro. The inflation rate in Switzerland is expected to rise to 0.8%, higher than the previous figure of 0.7% on a yearly basis, a very low reading, which while being positive for the Swiss Franc, it should not be a crucial factor for the Swiss National Bank to weigh on increasing interest rates soon.
American Session
- Canada Ivey PMI
Time: 15:00 GMT
The Ivey Purchasing Managers’ Index (PMI) measures the activity level of purchasing managers in Canada, with rising numbers being positive for the Canadian Dollar, signaling higher future economic performance of the broader economy. The forecast is for a reading of 60.2, an increase compared to the previous reading of 59.6.
- Fed Dudley Speech
Time: 17:00 GMT
A speech from a central bank is always important, as it can move the local currency in case of new information on economic conditions or projections on growth, inflation.
Asian Session
- BoJ Kuroda Speech
Time: 01:00 GMT
Same comments as per Fed speech. The speech may move the Japanese Yen if new important fundamental economic data is released or statements are made on economic conditions, monetary policy and inflation, growth of Japan.
