A central bank monetary decision from the Bank of Japan, US GDP Growth Rate and Canada Inflation Rate are the main economic events which can move the forex market today, and add increased volatility and price action for the Japanese Yen, the US Dollar and the Canadian Dollar.
These are the main economic events in the forex market to focus on today:
European Session
- Switzerland Trade Balance, France Business Confidence, Eurozone Consumer Confidence
Time: 07:00 GMT, 07:45 GMT, 15:00 GMT
Higher than expected or rising trade balance surplus will be supportive and positive for the Swiss Franc, signaling higher exports than imports, and increased demand for goods and services nominated in the currency, which may lead to its appreciation against other currencies in the future. The forecast is for an increase in the trade surplus. Also higher readings for business confidence and consumer confidence will be supportive for the Euro, especially a rising figure for the consumer confidence in the Eurozone, which is related to consumption and economic growth. The forecast is for an increase in the consumer confidence.
American Session
- Canada Retail Sales and Inflation Rate, Core Inflation
Time: 13:30 GMT
Higher figures for retail sales and inflation rate will be positive for the Canadian Dollar, signaling a robust economy, increased consumer spending, and inflationary pressures in the economy, which increases the prospects of a tighter monetary policy in the future, with interest rate hikes to fight inflation. The forecasts are for an increase in the retail sales on a monthly basis and an increase of inflation on a yearly basis. However the core inflation which is a more representative measure of inflation, is expected to decline on a yearly basis, with a figure of 0.8%, lower than the previous figure of 0.9%. These news may support the Canadian Dollar and lead to its appreciation against other currencies.
- US PCE Prices, Core PCE Prices, Initial Jobless Claims, Philadelphia Fed Manufacturing Index, Chicago Fed National Activity Index, GDP Growth Rate, GDP Price Index, Corporate Profits, EIA Natural Gas Stocks Change
Time: 13:30 GMT, 15:30 GMT
A series of very important fundamental news about the state of US economy, with emphasis on the GDP growth rate. It is the top economic indicator of economic growth, and rising figures signal both growth and expansion for the local economy. The forecast is for an increase and a figure of 3.3% on an annualized basis for the third quarter, higher than the previous figure of 3.1%.
Chicago Fed National Activity Index is used to assess economic activity and inflationary pressure within the country. Positive readings of this index correspond to economic growth above the trend. Philadelphia Fed Manufacturing Index rates general business conditions in the city of Philadelphia. Rising readings are positive for the US Dollar and the US economy. On the other hand lower readings for the initial jobless claims signal a robust labor market, as fewer people file for unemployment benefits.
Asian Session
- BoJ Interest Rate Decision
Time: 03:00 GMT
The Japanese Interest Rate is the key interest rate that determines the cost of lending to credit borrowers, including banks and institutions. Rising figures for the key interest rate may lead to the appreciation of the Yen against other currencies offering a better holding period return, but the forecast is for the key interest rate to remain unchanged at -0.1%, which can influence the currency depending on the statements of future interest rate path and economic conditions and growth prospects.
