By Anton Eljwizat
The EUR experienced one of its most bullish trading days in recent weeks on Wednesday. The EUR made significant gains against many of its most traded currency pairs, such as the GBP, JPY and USD.
Today’s busy calendar will have forex traders highly active in the upcoming European and American sessions. The euro zone will publish their interest rate decisions along with monetary policy statements. The US will later publish its trade balance and weekly unemployment claims and ISM Non-Manufacturing PMI report prior to tomorrow’s very significant NFP figure.
Here is a roundup of today’s leading events:
12:45 GMT: EUR – Minimum Bid Rate
The release of the European Central Bank’s (ECB) latest decision regarding its short-term interest rates will no doubt have a heavy effect on the value of the EUR. Predicting the movement of the 17-nation currency following such reports is, however, highly difficult given the volatility typically experienced around this event. Traders should make sure to protect their positions today and expect sharp movements in the market.
13:30 GMT: USD – US Unemployment Claims
This indicator reflects the number of individuals who filed for unemployment insurance for the first time during the past week, and is considered to be the broadest measure of economic health. If the end result will show a better than forecast figure the USD might get boosted.
15:00 GMT: USD – US ISM Non-Manufacturing PMI
This indicator measures the level of a diffusion index based on surveyed purchasing managers, excluding the manufacturing industry. As leading indicators of economic health, businesses react quickly to market conditions and this report has a direct correlation with the strength of the US economy. Today’s forecast is for higher growth than last month, indicating that a positive return to economic normalcy is beginning to get underway. Such an outcome should boost the USD.
Forex Market Analysis provided by ForexYard.
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