A busy economic calendar today in the forex market with numerous important economic events related to the economies of Australia, Eurozone, France, Switzerland, Germany, US and Japan. Moderate to high volatility is expected for several currency pairs, and especially for the EUR/USD, and the GBP/USD, as for the British Pound a speech by the BoE Governor is important as it is related to Brexit and the UK economy.
These are the main economic events for today to focus on the forex market:
European Session
- France Gross Domestic Product, Switzerland KOF Leading Indicator, UK Mortgage Approvals, Eurozone Gross Domestic Product
Time: 06:30 GMT, 08:00 GMT, 09:30 GMT, 10:00 GMT
The Gross Domestic Product measures the total economic activity and growth of any economy, with rising or better than expected readings indicating a robust economy, with increased economic activity expansion, being positive for the local currency. The forecast is for an unchanged reading of 2.3% GDP growth rate for France on a yearly basis, which can be considered a neutral reading, but later on the forecast for the annual GDP growth rate for the Eurozone is expected to show an increase and a reading of 2.7%, higher than the previous reading of 2.6%, and unchanged at 0.6% on a quarterly basis.
This is positive and should be supportive for the Euro. The KOF Leading Indicator Index is important as it provides useful insights and a prediction about the future performance of the Swiss economy for a period of 6 months. It consists of several other important economic indicators such as consumer confidence, and increased readings are positive for the Swiss Franc. The forecast is for a decline with a reading of 110.8, lower than the previous reading of 11.3, which is considered negative for the Swiss Franc.
Also for the UK economy the forecast for the mortgage approvals are for a decline, with a reading of 63.5K, lower than the previous reading of 65.1K, which can be considered also negative for the British Pound, reflecting a lower growth rate of mortgage approvals, which reflect the state of the housing market in UK.
- Germany CPI
Time: 13:00 GMT
Consumer Price Index is a measure of inflation, and Germany is the largest economy in the Eurozone, therefore the inflation rate in Germany has a great weight on the Eurozone’s total inflation rate. Increased inflation rates over time in Germany can be positive for the Euro, increasing the odds of future interest rates by the ECB. But the forecast is for an unchanged reading of 1.7% on a yearly basis and a decline on a monthly basis, which will indicate that inflation in Germany is still at relative low levels, which is considered neutral to negative for the Euro.
- BoE Governor Carney Speech
Time: 15:30 GMT
A speech by the Bank of England Governor on Brexit and economic conditions in UK has the potential to influence significantly the British Pound, either causing its sudden appreciation or depreciation against other currencies.
American Session
- US S&P/Case-Shiller Home Price Index, Consumer Confidence Index
Time: 14:00 GMT, 15:00 GMT
Higher or rising readings for both economic indexes will be positive for the US economy and the US Dollar, signaling a robust housing market with increased home prices due to high demand for homes, and also increased optimism for the economy which in many cases leads to higher consumer spending and economic growth in terms of GDP readings. The consumer confidence reading is expected to increase to the figure of 123.0, higher than the previous figure of 122.1.
Pacific Session
- Australia NAB Business Confidence
Time: 00:30 GMT
An economic report about the current state of the business sector in Australia, with rising or higher than expected readings being positive for the Australian Dollar, indicating increased economic and business activity. Also higher readings are correlated to higher investment and employment levels, both of them also supportive for the Australian Dollar.
Asian Session
- Japan Industrial Production
Time: 23:50 GMT
Industrial Production is a leading economic indicator for the state of the Japanese economy, and also having a correlation with levels of employment, exports, personal income and consumer spending. Higher or rising figures are considered positive for the Japanese Yen, indicating a strong industrial activity. However the forecast is for a decline and a reading of 3.2% on a yearly basis, lower than the previous reading of 3.6%, which although shows positive growth, yet it indicates a slowdown in industrial expansion, which may be interpreted as negative for the Japanese Yen.
