There is significant economic data today in the forex market, related to the economies of Eurozone, Canada, Australia and Japan, so the expected volatility and price action for several currencies is expected to be moderate to high.
These are the main economic events in the forex market for today:
Switzerland Unemployment Rate, France Balance of Trade, Germany Industrial Production
1. Time: 06:45 GMT, 07:00 GMT, 07:45 GMT
Lower readings for the unemployment rate and higher for the balance of trade and industrial production are supportive and positive for the Swiss Franc and the Euro. The industrial production for Germany on a monthly basis is expected to increase to 1.0%, compared to the previous reading of -1.6%.
ECB General Council Meeting, Eurozone GDP Growth Rate, ECB Draghi Speech
2. Time: 09:00 GMT, 10:00 GMT, 16:00 GMT
The most important economic event for the Euro is the GDP growth rate, which can set a new trend in the next days depending on the outcome. On a quarterly basis the forecast is for a small decline with a reading of 0.6%, lower than the previous reading of 0.7%, but on a yearly basis the forecast is for an increase, with a figure of 2.5%, higher than the previous figure of 2.3%. Any higher than expected positive surprise can possibly lead to the appreciation of the Euro against other currencies.
US Initial Jobless Claims, Canada Ivey PMI, US EIA Natural Gas Stocks Change
3.Time: 13:30 GMT, 15:00 GMT, 15:30 GMT
The weekly number for the initial US jobless claims will provide information on the state of labor market. The most positive scenario on weekly basis for the US Dollar and the US economy is to have both falling initial jobless claims and continuing jobless claims, as this will reflect a strong economy. The Ivey Purchasing Managers’ Index (PMI) is an important indicator of business conditions in Canada, and rising figures are positive for the Canadian Dollar. The Natural Gas Stocks Change measures the level of supply/demand for natural gas. In general higher than expected readings of increase in inventories signals a weak demand for the gas and is negative for the natural gas prices.
Australia Balance of Trade, RBA Bulletin
4.Time: 00:30 GMT
A trade surplus is considered positive and supportive for the Australian Dollar signaling higher demand for the currency, which should weigh on its future appreciation against other currencies if not in the short-term in the long-term. The forecast is for a positive trade surplus, but the surplus is expected to be narrower, compared to the previous figure. The RBA bulletin can provide important information for interest rate decisions and their future path, and can influence also the Australian Dollar.
Japan Leading Economic Index, Coincident Index, Current Account, GDP Growth Rate
5.Time: 05:00 GMT, 23:50 GMT
Important fundamental data for the economy of Japan can be supportive and positive for the Japanese Yen in the event that actual figures are higher than expected or rising. All else equal an index reading above 100 is positive for the economy whereas a reading below 100 is seen as negative, and the forecast is for a reading of 106.1, marginally lower than the previous reading of 106.4. However the forecast for the GDP growth rate are for a decline both on a quarterly basis and on an annualized basis, which may impact negatively on the Japanese Yen, as the readings if true, will indicate a slower economic growth.