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Today there is a very important economic event early in the morning, related to the Eurozone, and another one at the evening, the interest rate decision by the Reserve Bank of New Zealand.

In between there is also plenty of economic data, which can move the forex market, from news about the Canadian housing market to the US Crude Oil Stocks Change. Geopolitical tensions in the Saudi Arabia, are the main cause of a rally for oil prices, while gold prices have also moved higher as well.

These are the main economic events for today in the forex market.

European Session

  1. France Balance of Trade and ECB Non-Monetary Policy Meeting

Time: 07:45 GMT, 09:00 GMT

The balance of trade for France is expected to show a trade deficit of €-4.8B, wider than the previous figure of €-4.5B. The ECB Non-Monetary Policy Meeting is important as decisions on issues about economic relations, market infrastructure, corporate governance and other financial matters, may influence the price action of Euro currency pairs.

American Session

  1. Canada Housing Starts

Time: 13:15 GMT

Housing Starts reflect the growth in housing construction, and rising numbers are associated with higher economic growth, a positive factor for the Canadian Dollar. The forecast is for a figure of 210.0K, a decline compared to the previous reading of 217.1K.

  1. EIA Crude Oil Stocks Change and Gasoline Stocks Change

Time: 15:30 GMT

Any surprise in the actual versus expected figures for the crude oil and gasoline inventories, can move the oil prices, especially as the recent rally in oil prices is mainly attributed to geopolitical tensions in the Saudi Arabia region. Also it can move the USD/CAD currency pair, so high volatility is expected for this currency pair.

Pacific Session

  1. Reserve Bank of New Zealand Interest Rate Decision

Time: 20:00 GMT

The key interest rate is expected to remain unchanged at 1.75%. But expectations and statements on future monetary policy changes and economic conditions, such as growth, inflation, can influence the New Zealand price action. In general an unchanged interest rate decision is considered to have a neutral effect on the price action, but any statements that can signal a change in expectations about economic conditions mentioned often add volatility.

Asian Session

  1. Japan Leading Economic Index, Coincident Index, Machinery Orders and Current Account

Time: 05:00 GMT, 23:50 GMT

The leading economic index and the coincident index measure the current economic and business activity in Japan, with rising figures being positive for the Economy of Japan and Japanese Yen reflecting economic expansion and growth, based on various indicators. Both indexes are forecasted to show a decline, compared to their previous figures, but any reading above 100 is considered positive for the economy, and both figures are expected to well above the 100 figure.

The Current Account which measures international trade flows, is expected to show a figure of ¥2375.4B, lower than the previous figure of ¥2380.4B, but a surplus, which is positive for the Japanese Yen. The Current Account measures the balance of exports minus import of goods, plus net income from abroad and net transfer payments. All else equal a positive account indicates a nation that is a net lender to the worldwide economy whereas on the opposite scenario indicates that the nation is a net borrower.

Increased demand for the Japanese Yen, as a result of the Current Account surplus is considered supportive and positive for the appreciation of the currency against other currencies.

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