The new trading week for September 18-22 2017 in the forex market starts with important economic news related only to the Euro, but later on during the week there is the anticipated interest rate decision by the Fed one day later the monetary policy decision by the Bank of Japan, both very important economic events that can set new trends for the US Dollar and the Japanese Yen.
Important economic events like monetary policy decisions can have a significant price action on the currencies, something we witnessed past week with the Bank of England, which left the key interest rate unchanged, but comments about future interest rate increases caused the significant and very quick appreciation of the British Pound versus major currencies, such as the US Dollar.
These are the main economic events for today, which have the potential to move the forex market:
Euro-Zone Consumer Price Index (August)
Time: 09:00 GMT
The forex market will monitor closely the monthly economic reading for the Consumer price Index in the Eurozone, being a very important indicator for the inflation rate. There are expectations that the ECB will soon start to taper its quantitative easing program, gradually reduce it, and having a main target of inflation rate in the range of 0.00%-2.00%.
The higher is the actual reading for the Consumer Price Index, the more likely are the odds for a future interest rate increase, being supportive and positive for the Euro.
The forecast is for an increase of the CPI and a reading of 1.5% on a yearly basis, higher than the previous reading of 1.3%, while the monthly reading is also expected to rise with a figure of 0.3%, higher than the previous reading of -0.5%. However the Core CPI, which excludes energy and food prices is forecasted to stay unchanged at 1.2%, and any surprise in this specific reading can add increased volatility for the Euro.
Bank of England Governor Speech at International Monetary Fund in Washington
Time: 15:00 GMT
A speech by any central bank Governor is very important, and in this case comments about Brexit, rate of inflation, economic outlook and monetary policy changes can continue to add volatility to the British Pound, as expectations many times rather than actual decisions are enough to move the currencies and form strong trends.
Speech by Bank of Canada Deputy Governor
Time: 18:15 GMT
The same remarks as for the speech of the Bank of England Governor apply to the speech of the Bank of Canada Deputy Governor, with the potential to move the Canadian Dollar.
