The first trading day and session for the New Year, week and month has a light economic calendar with a focus on the state of the manufacturing industry for several countries. As volatility will gradually start returning to the forex market, today the opening trading session is expected to offer low volatility and price action for the majority of currency pairs.
There are several other important economic events later o this week, such as the US non-farm payrolls on Friday 5th January 2018, and these events can set the first new trends in the forex market for 2018.
These are the main economic events today in the forex market to focus on:
European Session
- Spain Markit Manufacturing PMI, Italy Markit/ADACI Manufacturing PMI, Germany Markit Manufacturing PMI, Euro Area Markit Manufacturing PMI, UK Markit/CIPS Manufacturing PMI
Time: 08:15 GMT, 08:45 GMT, 08:55 GMT, 09:00 GMT, 09:30 GMT
The Manufacturing PMI Index tracks the state of the manufacturing industry, with values above 50.0 indicating industry expansion and below indicating contraction. Higher than expected or rising figures are reflecting therefore economic and business expansion for the manufacturing sector, being a positive and supportive factor for the local economies and their currencies, as manufacturing sector serves as an indicator of the state of the broader economic activity and growth. All mentioned Purchasing Managers Indexes (PMI) are expected to increase compared to their previous figures, which should be positive for the Euro and the British Pound.
American Session
- US Markit Manufacturing PMI Final
Time: 14:45 GMT
After the release of the European economies Purchasing Managers Indexes the US PMI Index is also expected to increase with a figure of 55.0, higher than the previous figure of 53.9. As this number will reflect economic expansion also for the US manufacturing sector, it should be both positive and supportive for the US Dollar as well.
- API Crude Oil Stock Change
Time: 21:30 GMT
The crude oil prices closed in 2017 near their highs, so this weekly report will provide an overview of the US petroleum demand. Large surprises, positive or negative may have an influence on the crude oil prices. If for example the increase in crude inventories is more than expected, then this implies weaker demand and is considered negative for crude prices.
