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The forex market economic calendar has a strong focus on economic data related to the economy of Japan, as there will be released both the BoJ Interest Rate Decision and important fundamental news such as the balance of trade, which are expected to move the Japanese Yen.

There are not any important economic events during the American or Pacific session, but during the European session there will be released important news related to the economies of Eurozone and UK, plus the World Economic Forum Annual Meeting starts in Davos. Moderate to high volatility is expected also for the Euro and the British Pound.

These are the main economic events in the forex market today to focus on:

European Session

  1. World Economic Forum Annual Meeting, ZEW Economic Sentiment Eurozone, ZEW Economic Sentiment Index Germany and ZEW Current Conditions

Time: 08:00 GMT, 10:00 GMT

A very important annual global financial, economic and business event, the World Economic Forum’s Annual Meeting starts today, and it will last from 23-26 January 2018. The World Economic Forum’s Annual Meeting brings together leaders from business, government, international organizations, academia and civil society at the beginning of the year to discuss challenges related to the global, regional, and industry agendas. The January 2018 meeting will focus on the theme, ‘Creating a Shared Future in a Fractured World’.

The ZEW Economic Sentiment Index tracks the sentiment among financial and economic analysts regarding the current and future economic conditions. Higher than expected or rising figures are considered positive and supportive for the Euro Area, Germany and the Euro as they reflect an increased level of confidence about current and future economic conditions and expansion for the economy.

The forecasts are for increases of the ZEW Economic Sentiment Index for Germany to 17.9, higher than the previous reading of 17.4 and also for an increase of the Eurozone ZEW Economic Sentiment Index to 29.7, higher from the previous reading of 29.0. These higher readings should be positive for the Euro.

  1. UK CBI Industrial Trend Orders and CBI Business Optimism Index, Euro Are Consumer Confidence

Time: 09:30 GMT, 15:00 GMT

Rising or higher than expected figures for the industrial orders, business optimism and consumer confidence are positive for the British Pound and the Euro, reflecting a strong industrial sector and increased economic activity, while the higher consumer confidence tracks the consumers’ insights regarding business conditions, employment situation, income and overall economy. In general higher consumer confidence leads to higher consumer spending and higher economic growth. The forecasts are for a decline for the UK industrial trend orders, but a higher consumer confidence for the Eurozone with a reading of 0.6, higher than the previous reading of 0.5.

American Session

  1. API Crude Oil Stock Change

Time: 21:30 GMT

The American Petroleum Institute reports inventory levels of US crude oil provides information about the US petroleum demand. Large surprises can move the crude oil stock prices. For example a figure showing a decline in inventories which is less than expected indicates weaker demand for crude oil and is negative for the crude oil prices.

Asian Session

  1. BoJ Interest Rate Decision, Japan All Industry Activity Index, BoJ Quarterly Outlook Report, Japan Balance of Trade and Exports

Time: 03:00 GMT, 04:30 GMT, 05:00 GMT, 23:50 GMT

A series of very important economic events for the Japanese economy and the Yen, with an emphasis on the BoJ Interest Rate Decision, which is expected to keep unchanged the key interest rate at -0.10%.Any statements indicating a shift in monetary policy can add plenty of volatility for the Japanese Yen as later on there will be the release of the quarterly outlook report on the economy.

Higher than expected readings for the All Industry Activity Index and the Balance of Trade, will also be positive and supportive for the Yen, indicating increased economic and business activity plus production for various services, while the trade of balance surplus in general leads to the appreciation of the Yen against other currencies over time due to higher capital inflows in Japan and increased demand for Japanese goods and services.

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