The economic calendar today has several important economic events related to the Euro, Swiss Franc, British Pound, and the American and Australian Dollar, with a focus on the unemployment rate in Germany and the Federal Open Market Committee minutes which can influence the EUR/USD currency pair. Moderate to high volatility is expected for the Euro and US Dollar currency pairs as liquidity and market participants start returning in the forex market and the first important fundamental news of 2018 will be officially released.
These are the main economic events for today to focus on:
European Session
- Germany Unemployment Rate Harmonised, Spain Unemployment Change, Switzerland Retail Sales and SVME Manufacturing PMI, Germany Unemployment Change and Rate, Spain Consumer Confidence and UK Construction PMI
Time: 07:00 GMT, 08:00 GMT, 08:15 GMT, 08:30 GMT, 08:55 GMT, 09:00 GMT, 09:30 GMT
A series of important macroeconomic and fundamental news for the Euro, Swiss Franc and British Pound can influence their price action as lower than expected or declining unemployment rate in Germany, higher consumer confidence in Spain, and also higher than expected or rising retail sales for Switzerland and a stronger than expected construction PMI reading for the UK will be supportive and positive for the local currencies. The unemployment rate in Germany is expected to marginally decline to 5.5%, lower than the previous figure of 5.6%, and this can be positive for the Euro, as a strong labor market is associated with increased consumer spending and higher economic growth.
American Session
- US ISM Manufacturing Employment, ISM Manufacturing PMI, Construction Spending, FOMC Minutes and Total Vehicle Sales
Time: 15:00 GMT, 19:00 GMT, 20:00 GMT
Higher than expected or rising figures for The Institute of Supply Management (ISM) Manufacturing Purchasing Managers Index (PMI) reflect a positive economic and business outlook, and are supportive and positive for the US Economy and the US Dollar. Although there are seasonal adjustment factors the figures of the ISM PMI indexes are expected to remain unchanged for the manufacturing sector at 58.2, and decline for the employment indicator, which can be considered neutral to slightly negative for the US Dollar.
A decline is expected for the reading of the monthly construction spending and the total vehicles sales, showing weakness for the construction sector and the consumer spending, but the main focus will probably be on the release of the FOMC minutes and any statements on the monetary policy and economic conditions. In 2017 the FED interest rate hikes did not contribute to the appreciation of the US Dollar against its major counterparties, so the forex market will focus on the statements of the monetary policy, as soon there will a change for the Chair of the FED, another factor which can influence the US Dollar.
Pacific Session
- Australia AIG Services Index
Time: 22:30 GMT
The Index tracks the state of the services industry, with higher than expected or rising figures signaling a strong services sector, increased economic and business conditions, which can lead to higher economic growth, as improved economic conditions can have a positive impact on the employment change, consumer spending and support the Australian Dollar, causing its appreciation versus other currencies.
