A look at economic calendars around the world seems to reveal nothing on the order of the big announcement last week with the devaluation of the yen. Significant movement in the major pairs, though, is still possible, especially with the Federal Reserve making an announcement tomorrow concerning their outlook for the American economy – and, therefore, the dollar.
Below is a summary of the expected global forex news for this week and how each event could impact the major currencies in the global market.
Tuesday, September 21
- The Federal Open Market Committee (FOMC) will make an announcement at 2:15 PM EDT regarding its latest rate decision. Experts expect the rate to remain unchanged from 0.25%. A decrease in the rate, or language suggesting a future change or more stimulus in the near term, will likely weaken the dollar.
- The Swiss franc trade balance will be released at 2:15 AM EDT. A trade deficit of 2.8 billion is expected to be announced, which will likely exhibit downward pressure on CHF.
- Canada will release its CAD Consumer Price Index Year-Over-Year at 7:00 AM EDT. The gauge, which measures inflation, is expected to rise from 1.8% to 1.9%. USD/CAD will likely pick up slightly following the announcement.
Wednesday, September 22
- The Bank of England is expected to release its minutes at 4:30 AM EDT. This announcement, always a key event in global forex news, will mostly forecast a stable outlook for the pound. But, many investors are banking on the news sending the pound down slightly, particularly against the euro.
- Canadian Retail Sales Month-Over-Month for July will be released at 8:30 AM EDT. Consumption is expected to increase from 0.1% to 0.6%, indicating that consumer spending and confidence are both increasing.
Thursday, September 23
- The EU will release its Euro-Zone Purchasing Manager Index Composite for September at 4:00 AM EDT. The PMI is a timely and important indicator of the health of the services sector in Europe and can indicate whether or not the economy will strengthen based on the performance of the services sector. The current index is expected to drop slightly, down to 55.5 from 55.9. This will likely not have a significant effect on the euro.
- The U.S will see its Initial Jobless Claims report for September 18 released at 8:00 AM EDT. This report is always anticipated by forex traders because it speaks to the employment rate and can be an indicator of where employment will go in the near term. The report is expected to remain constant, with 450,000 initial jobless claims being filed.
Friday, September 24
- Another major piece of global forex news will come when the German IFO Expectations report for September is released at 4:00 AM EDT. The IFO is a survey that measures business sentiment in Germany. Since Germany is a dominant part of the EU economy, the report speaks to the future health of the euro. The rate is expected to fall from 105.2 to 104.0, suggesting that positive outlook for the economy is decreasing.
- The US Durable Goods Ex. Transportation report will come at 8:30 AM EDT. This report measures the purchase of durable goods excluding transportation goods (such as vehicles), which measures the optimism and spending trends of consumers. The rate will likely move from -3.7% in July to 1.0% in August, suggesting a bit of positive news for the dollar in global forex news.