The Industrial Production in the Eurozone, the Inflation Rate in Switzerland, The New Housing Price Index in Canada and US Export and Import Prices are some of the main economic events for today in the forex market. There are also many speeches by senior central bank officials.
These are the main economic events to focus on today in the forex market:
European Session
- BoE Broadbent Speech, Switzerland CPIF and Inflation Rate, Eurozone Industrial Production, ECB Cœuré Speech, Bundesbank Weidmann Speech, BoE Carney Speech
Time: 06:30 GMT, 07:30 GMT, 09:00 GMT, 12:15 GMT, 16:00 GMT, 19:00 GMT
The Consumer Price Index with a Fixed Interest Rate (CPIF) for Sweden latest figure was at 1.7 percent year-on-year in February 2018, unchanged from the previous month’s ten-month low. Higher than expected or rising figures indicate increased inflationary pressures in the economy of Sweden, which is positive for the Swedish Krona, as the central bank of Sweden may start increasing the benchmark interest rate to fight inflation depending on the economic activity and the 2 percent target for the inflation rate. The monthly inflation rate is expected to decline at 0.4%, lower than the previous figure of 0.7%.
The monthly and yearly industrial production in the Eurozone is expected to increase at 0.1%, higher than the previous reading of -1.0%, and at 3.8%, higher than the previous reading of 2.7% respectively. Increased industrial production is positive and supportive for the Euro, indicating a strong industrial sector and increased business and economic activity. The speeches by senior central bank officials will be monitored by the forex market for any updated information and statements on current economic conditions, which may influence the currencies. As seen from the chart the industrial production in the Eurozone is in an uptrend as of June 2017 but declined significantly in January 2018, at 2.7% year-over-year, lower than the previous figure of 5.3% year-over-year.
American Session
- Canada New Housing Price Index, US Export Prices and Import Prices, Fed Kashkari Speech
Time: 12:30 GMT, 21:00 GMT
The new home prices were unchanged in January of 2018, for a second consecutive month after a 0.1 percent gain in November. Increased prices for houses are considered having both inflationary pressures on the economy and positive for the Canadian Dollar, reflecting a robust housing market, a leading indicator of the broader state of the economy. As seen from the chart the new home prices are rising for the past 1 year.
In US higher figures for export and import prices measure the price changes of US export goods and imported goods and services purchased domestically. They provide information on the inflation rate, as higher figures indicate inflationary pressures in the US economy, which is a positive factor for the US Dollar, increasing the probabilities of future interest rate increases by the Fed.
Pacific Session
- Australia Home Loans, investment Lending for Homes
Time: 01:30 GMT
Higher figures are supportive and positive for the Australian Dollar, reflecting a robust housing market, increased demand for homes, indicating also higher level of consumer optimism for the economic outlook. In general, increased investment lending forecasts in many cases future growth in the economy.
Asian Session
- BoJ Kuroda Speech
Time: 00:30 GMT
A speech by Bank of Japan Governor is always important and may influence the Japanese Yen based on updated information on current economic conditions or a potential shift in monetary policy.
