Today’s economic calendar does not have any Red Folder or Orange Folder event scheduled. Because of this, the possibility of big fundamental moves in the market may be less, but traders should keep an eye on ECB speeches and US economic data.
In the European session, Switzerland’s SECO Consumer Climate data will be released first, whose forecast is -38 while the previous reading was -40.
After this, the market’s focus will be on the speeches of Christine Lagarde and Joachim Nagel. Comments from both officials can influence the euro’s direction in the short term, especially if any new signal is received regarding inflation or future interest rate policy.
In European data, the forecast for Italian Trade Balance is 5.19B, while the previous figure was 4.71B. Along with this, the forecast for Eurozone Industrial Production is 0.2% and the forecast for Trade Balance is 7.8B. If the actual data comes very different from expectations, volatility can be seen in EUR pairs.
In the North American session, Housing Starts, Manufacturing Sales and Wholesale Sales data will be released for the Canadian dollar. The forecast for Housing Starts is 255K, which is lower than the previous 279K, while Manufacturing Sales is forecast at 4.4%.
In the US session, traders’ attention will be on Empire State Manufacturing Index, Capacity Utilization Rate, Industrial Production and NAHB Housing Market Index.
- Empire State Manufacturing Index: Forecast 13.2 | Previous 19.6
- Capacity Utilization Rate: Forecast 76.2% | Previous 76.1%
- Industrial Production m/m: Forecast 0.3% | Previous 0.7%
- NAHB Housing Market Index: Forecast 36 | Previous 37
These reports do not come in the high-impact category, but if a big surprise is seen in the actual figures then short-term movement can be seen in USD pairs.
Market Movement
In today’s morning market movement, strength is being seen in safe-haven currencies CHF and JPY.
- USDCHF is trading positive around 0.7938.
- USDJPY is staying near 160.11.
- Slight pressure is visible in EURUSD and GBPUSD.
- Selling pressure is also being seen in cross pairs like EURJPY, GBPJPY and EURGBP.
What Is Important For Traders?
Today there is no major high-impact event, so market sentiment and speeches will remain more important.
Comments from ECB President Lagarde can bring volatility in EUR pairs.
During US data releases, short-term movement can come in USD pairs.
In a low-news environment, markets can remain range-bound, so traders should stay cautious of false breakouts.
Along with price action, monitoring both the economic calendar and headlines will be more important today.
Overall, today’s trading session can depend more on central bank commentary, market sentiment and technical levels than on big economic surprises.
Disclaimer:- This article is only for educational and informational purposes. Any information given in it is not financial advice. There is significant risk in Forex trading and you can lose your entire invested capital. Before making any trading decision, definitely consult your financial advisor. Past performance is not a guarantee of future results.
