Tags: , , , , , ,
4 min read 

This new trading week in the forex market is starting with a relative light economic calendar, and volatility, price action should be low to moderate as the holidays for Christmas are only a few days away. In the previous week we had 4 major central banks monetary policy decisions, and this should be more than enough for the forex market participants to weigh on their fundamental aspects and probably form new trends for major currencies.

These are the main economic events for today in the forex market:

European Session

  1. Italy Balance of Trade, EuroZone Inlation Rate and Core Inflation Rate

Time: 09:00 GMT, 10:00 GMT

A higher than expected surplus for the balance of trade is positive for the economy of Italy and the Euro, reflecting strong demand for goods and services nominated in Euro, a fundamental factor which can weigh on the appreciation of the Euro against other currencies in the future. Although a rising inflation rate in the Eurozone is also considered positive for the Euro, the recent ECB monetary policy decision made clear that inflation is still below the threshold level, and there are hardly any inflationary pressures in the Eurozone, which can be considered a neutral fundamental factor. The forecast is for a small increase of the inflation in the Eurozone on a yearly basis, with a figure of 1.5%, higher than the previous figure of 1.4%, but the core inflation rate, a more conservative measure of inflation is expected to remain unchanged at 0.9%.

  1. UK CBI Industrial Trends Orders

Time: 11:00 GMT

This figure measures the industrial and factory orders in UK, and rising or higher than expected figures are positive for the British Pound reflecting a robust industrial sector. The forecast however is for a figure of 3.0, lower than the previous figure of 17.0, which may influence negatively the British Pound.

American Session

  1. US NAHB Housing Market Index

Time: 15:00 GMT

NAHB Housing Market Index is a monthly Index released by The National Association of Home Builders (NAHB), which measures the level of home sales. Higher than expected reading are positive for the US dollar reflecting a strong housing market and a positive future economic outlook. The forecast is for an unchanged figure of 70.0, which can be considered neutral for the US Dollar. The importance of housing market in the broader state of the US economy is extremely high, so any economic event related to the housing market is closely monitored to examine economic trends, which may act as an indicator of the economic growth or slowdown of the US economy.

Trade now