The Forex trading week 26-30 March 2018 has only a few economic events, a relative light economic calendar with main economic data in the European and American Session. A low to moderate volatility and price action is expected today.
These are the main economic events for today to focus on:
European Session
- France GDP Growth Rate, Switzerland Current Account, UK Finance Mortgage Approvals
Time: 06:45 GMT, 07:00 GMT, 08:30 GMT
Robust GDP growth signals increased economic activity and often a higher demand for the domestic currency, economic expansion and inflationary pressures which may lead the local Central Bank, the ECB to increase interest rates. The forecast for the GDP Growth Rate in France is for a figure of 0.6% on a quarterly basis, a marginal increase compared to the previous increase of 0.5%. This is positive for the French economy and the Euro. As seen from the chart, the GDP Growth Rate in France is expected to grow and reach the level of 1.93% in 2020, and decline marginally thereafter and stabilize neat the level of 1.84-1.86%.
The statistic depicts France’s real gross domestic product (GDP) growth rate from 2012 to 2016, with projections up until 2022. GDP refers to the total market value of all goods and services that are produced within a country per year. It is an important indicator of the economic strength of a country. Real GDP is adjusted for price changes and is therefore regarded as a key indicator for economic growth. In 2016, France’s real GDP grew by about 1.19 percent compared to the previous year.
A current account surplus is considered positive and supportive for the Swiss economy and the Swiss Franc. The current account t is defined as the sum of the balance of trade, net income from abroad and net current transfers. A surplus indicates net inflows in the country and increased demand for the currency, due to the trade surplus, which in economic theory should lead to its appreciation against other currencies. Increased figures of Finance Mortgage Approvals in UK, are positive for the British Pound, reflecting a strong housing market, and probably consumer optimism about the economic outlook. The forecast is for a figure of 39.2K, less than the previous figure of 40.1K.
American Session
- Chicago Fed National Activity Index, Dallas Fed Manufacturing Index, Fed Dudley Speech, Fed Mester Speech
Time: 12:30 GMT, 14:30 GMT, 16:30 GMT, 19:30 GMT
As seen from the chart, the Chicago Fed National Activity Index, which measures the economic activity and growth in the area of Chicago, is volatile, with increased readings being positive and supportive for the US Dollar. The forecast is for a reading of 0.2, higher than the previous reading of 0.12. Also higher figures for the Dallas Fed Manufacturing index are supportive for the US Dollar, signaling increased economic activity in the Manufacturing Sector, especially for economic indicators such as output, employment, orders, and prices.
The forecast though is for a figure of 28.7, less than the previous figure of 37.2. A mixed economic data for the US economy overall is expected.
