The new trading session week in the forex market has many of important economic events, with 3 central banks interest rate decisions, from the Bank of Japan, The Fed and the Bank of England. But even today, there are plenty of economic news, which can move the forex market. Overall increased volatility and price action are expected this week, as on Friday 3rd November there are the US non-farm payrolls, which can set the tone and trend for the US Dollar in the future trading sessions.
These are the main economic events for today in the forex market:
European Session
- Germany Retail Sales and Unemployment Rate Harmonized, Inflation Rate Yearly Preliminary
Time: 07:00 GMT, 13:00 GMT
Early in the morning the readings for retail sales and unemployment rate for Germany will provide insights on the strength of the economy, as rising readings for retail sales and falling readings for unemployment rate are indicative of a robust economy, positive for the Euro. Retail sales are expected to rise to 3.0% on a yearly basis, compared to the previous reading of 2.8%, and on a monthly basis to show a reading of 0.7%, higher than the previous reading of -0.4%. Later on during the day the inflation rate on a yearly basis is expected to show a reading of 1.7%, a marginal decline from the previous reading of 1.8%.
- Spain GDP Growth Rate and Inflation Rate, Business Confidence
Time: 08:00 GMT, 10:45 GMT
The forecast for the GDP growth rate of Spain is for an increase of 3.2% on a yearly basis, higher than the previous reading of 3.1%, and on a quarterly basis for a reading of 0.8%, marginally lower than the previous reading of 0.9%. High or rising GDP growth rates reflect a robust economic growth in Spain, but contribute also positively to the Eurozone GDP growth, being supportive and positive for the Euro. The same applies to the inflation rate, as higher than expected or rising figures for the inflation rate in Spain, will weigh on the inflation rate in the Eurozone, increasing the probabilities of future interest rate increases by the ECB.
- Switzerland KOF Leading Indicators
Time: 08:00 GMT
This economic indicator measures business confidence, and any rising or better than expected figures are positive for the Swiss Franc, reflecting stronger optimism and economic, business activity. The forecast is for a reading of 105.5, marginally lower than the previous reading of 105.8.
- UK Mortgage Lending and BoE Consumer Credit
Time: 09:30 GMT
These economic figures measure the state of the housing market and consumer spending, with rising figures being positive for the British Pound. A strong housing market is related to higher consumer confidence, and higher consumer spending leads to higher economic growth. Both figures are expected to show a decline.
- Eurozone Industrial Sentiment, Economic Sentiment, Services Sentiment and Business Confidence
Time: 10:00 GMT
All these economic readings measure economic and business conditions in the Eurozone, with high or rising figures reflecting a robust economy, increased confidence and optimism for the economy, and in essence higher economic growth, a positive factor for the Euro. With the exception of the Services Sentiment figure which is expected to show a marginal decline with a reading of 15, compared to the previous reading of 15.3, the other 3 figures are expected to show an increase which should be supportive for the Euro.
American Session
- US Personal Income, PCE Price Index, Personal Spending and Core PCE price Index
Time: 12:30 GMT
The Core Personal Consumption Expenditure (PCE) index measures inflation rate, and rising readings are positive for the US Dollar, signaling inflationary pressures and increased probabilities of interest rate increases by the Fed. Also higher readings for personal income and personal spending are positive for the US economy and its growth .Both personal income and personal spending figures are expected to show a monthly increase.
- Dallas Fed Manufacturing Index
Time: 14:30 GMT
Dallas Fed Manufacturing Index is a monthly outlook survey conducted by the Federal Reserve Bank of Dallas, to assess the manufacturing and business activity of the state. Higher than expected readings for the index are positive for the US economy and the US Dollar as well showing manufacturing and business expansion, which can lead to higher economic growth.
Asian Session
- Japan Industrial Production and Unemployment Rate
Time: 23:30 GMT, 23:50 GMT
Higher readings for the industrial production and lower readings for the unemployment rate are indicative of a strong economy, and are positive for the Japanese Yen. The industrial production on a monthly basis is expected to show a reading of -1.5%, which is significantly lower than the previous figure of 2.1%, which should be interpreted as negative for the Japanese Yen, while the unemployment rate is expected to remain unchanged at 2.8%, a neutral reading.
