The economic calendar today in the forex market has important economic events to be released in all trading sessions, which can move the market. For the Euro important are the economic releases of the trade of balance for Germany, and the unemployment rate in the Eurozone, while the Japanese Yen can move based on the consumer confidence reading.
These are the main economic events in the forex market today:
- Switzerland Unemployment Rate and Retail Sales, Germany Industrial Production and Balance of Trade, France Balance of Trade, Italy Unemployment Rate
Time: 06:45 GMT, 07:00 GMT, 07:45 GMT, 08:15 GMT, 09:00 GMT
Lower rates of unemployment, and higher than expected or increasing figures for the industrial production and retail sales are positive for the local currencies, i.e. the Swiss Franc and the Euro. An increased figure for the balance of the trade and its surplus, is also supportive for the Euro and the economy in Germany, reflecting higher exports than imports, and increased demand for goods and services denominated in Euro, which in theory this increased demand should weigh on the natural appreciation of the currency over time.
- Eurozone Unemployment Rate
Time: 10:00 GMT
Lower unemployment rate leads to higher average wages for the labor force, increased consumer spending and higher economic growth. The forecast for the unemployment rate in the Eurozone is for a small decline with a figure of 8.7%, lower than the previous figure of 8.8%. This may have a direct positive influence on the Euro and its appreciation against other currencies.
- Canada Housing Starts, US JOLTs Job Openings and IBP/TIPP Economic Optimism, API Crude Oil Stock Change
Time: 13:15 GMT, 15:00 GMT, 21:30 GMT
The housing market is considered one of the leading indicators about the general state of the economy, and in general a high housing starts figure is essentially a forecast about strong future economic growth. Higher than expected or rising figures for the housing starts reflect a strong construction sector, and are positive for the economy. The forecast is for a decline in the number of housing starts, with a reading of 240K, lower than the previous figure of 252K, which may put downward pressure on the Canadian Dollar.
For the US Dollar rising readings for new job vacancies and economic optimism are considered positive and supportive, and the forecasts are for increases in both of the readings, a positive factor for the US economy as well. The American Petroleum Institute report is an overview of the US petroleum demand, with any large surprises having the potential to move the crude oil prices. For example a decline in inventories which is less than expected reflects a weaker demand and is considered negative for the crude oil prices.
- Australia Building Permits
Time: 00:30 GMT
The building permits indicator measures the change in the number of permits/approvals for new construction projects, and a rising figure is indicative of a strong housing market, which as mentioned before in the case of the economy of Canada, is positive for the economy of Australia, reflecting a robust economy. The forecast however is for a decline on a monthly basis, which may weigh negatively on the Australian Dollar.
- Japan Consumer Confidence
Time: 05:00 GMT
For consumer confidence, a number above 50 indicates optimism whereas 50 or below 50 indicates neutrality or lack of confidence respectively. As consumer confidence provides important economic insights on major indicators such as income growth, employment and spending willingness, higher readings are correlated high higher future economic growth, as increased consumer spending is a key driver of economic growth. The forecast is for an increase of the reading, which should influence positively the Japanese Yen.