The economic calendar today in the forex market is focused on European economic data with industrial production and the ECB Monetary policy meeting accounts, the GDP growth rate for Germany, inflation data for the US economy, plus important fundamental data on the economy of Japan. The volatility and price action for the Euro, US Dollar and Japanese Yen is expected to be moderate to high.
These are the main economic events in the forex market today:
European Session
- Germany Full Year GDP Growth, Italy Retail Sales, Eurozone Industrial Production , ECB Monetary Policy Meeting Accounts
Time: 09:00 GMT, 10:00 GMT, 12:30 GMT
All these economic data can influence directly the Euro and either support its appreciation against other currencies or continue its recent weakness against currencies such as the US Dollar. Rising figures for the GDP growth, industrial production and retail sales are positive for the Euro. The forex market will weigh on statements about economic conditions and any hints of monetary policy changes as the ECB Monetary Policy Meetings Accounts will be released and they will provide insights on monetary policy considerations and policy options, and financial market developments.
American Session
- Canada New Housing Price Index
Time: 13:30 GMT
Rising figures for the New Housing Price Index are indicative of a strong housing market, reflecting strong demand for new residential houses, and acting also as a leading indicator of health in the housing sector. Higher than expected figures are positive and supportive for the Canadian Dollar, with the forecast being an increase on a monthly basis, with a reading of 0.2%, higher than the previous reading of 0.1%.
- US Core PPI, PPI, Monthly Budget Statement
Time: 13:30 GMT, 19:00 GMT
The US Producer Price Index measures the change in the price of goods sold by manufacturers. The PPI is one of the key indicators that help to estimate the inflation. Higher than expected or rising figures indicate inflationary pressures in the economy, and should be considered positive for the US Dollar, as the Fed may raise interest rates to fight inflation.
The trend over time for the CPI is important to monitor on a regular basis, as seasonality may sometimes be evident. The forecast is for a decline of the CPI and Core CPI figures on a monthly basis, which may weigh negatively on the US Dollar. Also the monthly budget statement is expected to show a narrower budget deficit, which is positive as long-term budgets deficits are not sustainable.
Pacific Session
- Australia Retail Sales
Time: 00:30 GMT
Higher than expected or rising retail sales are positive for the Australian Dollar, signaling increased consumer spending, a key driver of economic growth measured by GDP growth. On a monthly basis the forecast is for a small decline and a reading of 0.4%, lower than the previous reading of 0.5%.
Asian Session
- Japan Coincident Index, Leading Economic Index, Current Account
Time: 05:00 GMT, 23:50 GMT
Coincident Index is one of the indicators that reflects the well-being of the national/regional economy. Increasing index readings correspond to the expansion of the national economy and are positive for the Japanese Yen. The Japanese Leading Composite Index is an average of 12 indexes that track inventory ratios, machinery orders, inventory stock prices and other economic indicators that are categorized as leading and anticipate economic trends. Rising figures for both of the indexes are positive for the economy, signaling strong economic conditions and growth.
The Japanese current account figure measures the balance of exports minus import of goods, plus net income from abroad and net transfer payments. As the current account incorporates the balance of trade figure, a rising current account surplus is positive for the local currency, indicating strong demand for goods and services denominated in the local currency, which in economic theory should lead to the natural appreciation of the Japanese Yen over time. The forecast is for a narrower current account surplus, which is mainly positive for the Japanese Yen.
