The main economic event today in the forex market is the Bank of England interest rate decision. There is economic data on the German economy and its unemployment rate, the balance trade of Australia, the consumer confidence in Japan and weekly reports on the US labor market.
These are the main economic events for today in the forex market:
European Session
- Switzerland Consumer Confidence and Retail Sales, Italy Markit/ADACI Manufacturing PMI, Spain Markit Manufacturing PMI
Time: 06:45 GMT, 08:15 GMT, 08:45 GMT
Higher than expected or rising figures will be positive for the economies of Switzerland, Spain and Italy, reflecting higher consumer spending and future economic growth and expansion for the manufacturing sector.
- Germany Markit Manufacturing PMI Final, Unemployment Rate and Unemployment Change
Time: 08:55 GMT
The largest economy of Eurozone Germany is expected to show a manufacturing expansion marginally lower than the previous reading, as the forecast for the Manufacturing PMI is a reading of 60.5, compared to the previous reading of 60.6, a stable and unchanged unemployment rate of 5.6% and improvement in the unemployment change, actually a decreasing unemployment change with a forecast of -10K, lower than the previous reading of -23K. Stable or better declining unemployment rate is positive for the economy of Germany and the Euro, reflecting a strong economy.
- Eurozone Markit Manufacturing PMI Final
Time: 09:00 GMT
The manufacturing section in the Eurozone is expected to expand further with a reading of 58.6, higher than the previous reading of 58.1, positive and supportive news for the Euro.
- UK Bank of England Interest Rate Decision, Inflation Report, Quantitative Easing and Construction PMI
Time: 09:30 GMT and 12:00 GMT
The construction activity in the UK is expected to remain stable, but the key focus will be on the interest rate decision by the Bank of England and the inflation report. An interest rate increase of 25 basis points is expected, a change from 0.25% to 0.50% for the key interest rate, but the forex market will focus on statements and comments, pointing to further future changes in the monetary policy as the Brexit procedures evolve over time. High volatility is expected for the British Pound and significant fluctuation against other currencies.
American Session
- US Nonfarm Productivity, Initial Jobless Claims, Unit Labour Costs
Time: 12:30 GMT
Several important economic data on the economy of US. Nonfarm productivity on a quarterly basis is expected to increase to 2.4% versus the 1.4% previous figure, initial jobless claims are expected to increase marginally to 235K, higher form the previous reading of 232K, while unit labour costs which reflect inflationary pressures but in a robust economy in general their trend should be a rising one, are expected to increase to 0.5%, higher than the previous reading of 0.2%. Increased productivity is positive for the US Dollar, signaling a strong economy.
- Fed Speeches
Time: 12:30 GMT, 16:20 GMT, 22:15 GMT
Any official speech from central banks members is important for comments and insights on economic and monetary policy, economic conditions and inflation.
- EIA Natural Gas Stocks Change
Time: 14:30 GMT
The weekly report will show if there any surprise in the actual versus expected figures, for inventories of natural gas. If there is a decline in inventories which is more than the expected reading, then this is positive for the natural gas prices as it implies strong demand for the natural gas.
Pacific Session
- Australia Balance of Trade, Building Permits and AIG Services Index
Time: 00:30 GMT and 22:30 GMT
Higher than expected or rising figures are positive for the Australian Dollar, signaling a strong economy, expansion for the services sector, a strong housing market and increased demand for Australian Dollars, which should lead to the appreciation of the Australian Dollar, if not in the short-term, in the long-term.
Asian Session
- Japan Consumer Confidence
Time: 05:00 GMT
The consumer confidence index is expected to decline, having a reading of 43.6 versus the previous reading of 43.9. Increased consumer confidence is in general positive for the local currency, reflecting increased optimism, and mainly higher consumer spending, a vital part for higher economic growth measured by GDP.
