The forex market economic calendar today is very light. For the trading week August 6-10, 2018 there are important economic news to be released. The US economy will release the inflation rate, producer prices and JOLTs job openings. Other important economic data include from UK: Q2 GDP growth, industrial production and trade balance, from Japan: Q2 GDP growth, household spending and machinery orders and there are interest rate decisions from Australia, and New Zealand central banks. Low to moderate volatility should be expected today in the forex market.
These are the key economic events in the forex market for today, time is GMT:
European Session
- Germany: Factory Orders (YoY, MoM), Construction PMI, Russia: Inflation Rate YoY
Time: 06:00, 07:30, 13:00
The German Factory Orders measure the change in manufacturing orders, providing a picture of the strength of demand for German industrial products. Factory orders are an early indicator of the overall level of spending in the economy, and spending is a key driver of economic growth. Higher than expected figures for the German Factory Orders and German Construction PMI are considered positive and supportive for the Euro indicating a strong manufacturing and construction sector. A reading above 50 indicates expansion in the construction industry and the forecasts are for a reading of 54.2 for the German Construction PMI, compared to the previous reading of 53, and the monthly German Factory Orders to decline at -0.2%, lower than the previous reading of 2.6%.
“The IHS Markit Germany Construction PMI fell to 53 in June of 2018 from 53.9 in May, below market expectations of 53.9. Still, the reading pointed to a solid overall growth in the construction sector as higher workloads translated into strong increases in employment and demand for materials, with purchasing activity rising the most since January. On the other hand, capacity constraints across the sector were reflected in stagnating order books. Also, purchase prices accelerated amid higher cost for raw materials; and constructors reported less optimism about the outlook. By sector, housing activity showed the strongest rate of growth although it was slightly lower than the one seen in May; commercial activity rose faster, and civil engineering rebounded marginally.”, Source: Trading Economics.
As seen from the chart the German Construction PMI after a large decline in March 2018 has been trending up in general in 2018 having peaked so far in January 2018 near the reading of about 60.0.
For Russia the yearly Inflation Rate is expected to increase at the rate of 2.5%, higher than the previous rate of 2.3%, which is considered positive for the Russian Ruble, as higher inflationary pressures may weigh on the central bank of Russia decision to tighten its monetary policy increasing the key interest rate soon.
Pacific Session
- Australia: TD Securities Inflation (YoY, MoM), AiG Performance of Construction Index
Time: 01:00, 22:30
The TD Securities Inflation is a monthly estimate of inflation in the Australian economy, and its importance is high due to the fact it is released one day before interest rate decisions are made, so the figure may influence RBA at its decision. Higher readings for the TD Inflation Rate and the AiG Performance of Construction Index are considered positive for the Australian Dollar, reflecting increased inflationary pressures in the economy and strong economic conditions on the short and medium term in the construction sector.
Asian Session
- Japan: Overall Household Spending YoY
Time: 23:30
The Overall Household Spending is an indicator that measures the total expenditure by households. Consumer spending is an indicator of consumer optimism. Higher than expected readings are considered positive for the Japanese Yen as consumer spending is a key economic driver for economic growth. The forecasts are for a reading of -1.6%, while being negative still lower than the previous negative reading of -3.9%.
