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The first day today for the trading session week 2-6 April 2018 has a thin economic calendar as it is Easter Monday, and Bank Holiday in many countries, mainly in the Europe. The liquidity will be low and is expected to return to normal levels gradually as of tomorrow. Price action and volatility is expected to be low, although there are some important economic events related to the US economy, which can move the US Dollar.

These are the main economic events for today:

American Session

  1. US ISM Manufacturing PMI and ISM Employment PMI, Markit Manufacturing PMI Final, Construction Spending, Fed Kashkari Speech

Time: 13:45 GMT, 14:00 GMT, 22:00 GMT

The Institute of Supply Management (ISM) Manufacturing Purchasing Managers Index (PMI) Report on Business measures several indicators on important factors such as imports, production, inventories, employment from data gathered in replies to questions made to purchasing and supply executives. Increased or higher than expected figures are positive for the US Dollar, reflecting both increased optimism and economic, business conditions. As seen from the chart from tradingeconomics.com, the United States ISM Purchasing Managers Index (PMI) Index increased in February 2018, with a reading of 60.8, reflecting the highest expansion in Manufacturing as of May 2004 and strong business conditions.

US ISM Manufacturing PMI

The forecast is for a figure of 59, less than the previous figure of 60.8. Increased or higher than expected readings for the ISM Manufacturing Employment Index and Construction Spending will also be positive for the US Dollar, signaling increased employment conditions in the Manufacturing Sector and a robust construction activity, contributing positively to investment expenditures and to industries related to building and construction, which is critical for the US economy. The forecast is for an increase of the Construction Spending on a monthly basis, with a figure of 0.4%, higher than the previous figure of 0.0%. The Manufacturing Purchasing Managers Index (PMI) measures the business conditions in the Manufacturing Sector, with readings above the 50.0 level signaling an expansion in the sector, which is positive for the US Dollar. The forecast is for a figure of 55.7, marginal higher than the previous figure of 55.3.

Asian Session

  1. Japan Nikkei Manufacturing PMI Final

Time: 00:30 GMT

Higher than expected or increasing figures are positive and supportive for the Japanese Yen. The chart from tradingeconomics.com shows that the Nikkei Manufacturing PMI Index is in an uptrend as of October 2017, and in a decline as of January 2018. The forecast if for a figure of 53.2, less than the previous reading of 54.1. This means that the Manufacturing Sector is still expanding, but at a slower pace, which should be monitored over time, as it may signal a more general trend in the Manufacturing Sector, a contraction and lower economic performance in the future.

Japan Nikkei Manufacturing PMI Final

Pacific Session

  1. Australia AIG Manufacturing Index

Time: 23:30 GMT

The Australian Industry Group (AIG) Manufacturing index measures the level of business conditions in the sector, with figures above the 50.0 level indicating expansion in the Manufacturing Sector. Higher than expected figures are positive for the Australian Dollar, as they could lead to higher future economic performance. The forecast is for a decline, with an anticipated figure of 56.5, less than the previous figure of 57.5, which may influence negatively the Australian Dollar.

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