Today the first trading session of the week, the forex market economic calendar is focused on economic data related to the European Session, as important economic news are absent from the America, Pacific and Asian Session. This indicates that there should be increased volatility and price action only in the European Session, with the Euro being the main currency pair to focus on today for any trading opportunities. However the forex market will weigh on the recent US non-farm payrolls released on Friday 5th January, which were a large miss on the estimates, and this could also have some volatility for the US Dollar today as well.
These are the main fundamental economic events to focus on today in the forex market:
European Session
- Germany Factory Orders, Switzerland Inflation Rate
Time: 07:00 GMT, 08:15 GMT
In general factory orders are an important economic indicator of the overall level of spending in the broader economy, as spending is considered to be a key driver for economic growth. Higher than expected or rising figures for the German factory orders will signal a strong industrial sector and will be positive for the Euro. A higher than expected inflation rate in the economy of Switzerland will signal the existence of inflationary pressures and may prompt the Swiss National Bank to raise interest rates so as to manage inflation. This will be positive for the Swiss Franc. The forecasts are for unchanged figures for both the German factory orders at 0.5% on a monthly basis, and an inflation rate of 0.8% for Switzerland on a yearly basis.
- Eurozone Services Sentiment, Industrial Sentiment, Economic Sentiment, Business Confidence, Retail Sales, Spain Business Confidence
Time: 10:00 GMT, 10:15 GMT
A series of economic and business sentiment figures will indicate the degree of optimism for the Eurozone economy, with higher than expected or rising figures reflecting both increased economic and business optimism, and higher future growth for production, employment, consumer spending and investments, all of which are indications of a strong economy. An increased sentiment in the services and business sector combined with rising retail sales will show that the economy of Eurozone is strong and will probably experience higher future economic growth, as consumer spending is a key fundamental factor of economic growth, measured by the level of GDP. These readings should be positive and supportive for the Euro. The forecasts are for increases in the figures of business confidence and mainly the retail sales for the Eurozone, both on a monthly and a yearly basis.
