A Brief Look at Major Forex Events This Week

By TraderVox.com

Tradervox.com (Dublin) – There are some signals of success in the euro region as optimism starts to creep in. However, the market is still concerned about the situation in Spain as Spanish Prime Minister continues to refrain from asking for help from the ECB. The US data is encouraging giving the dollar advantage over the yen as a safe haven currency. Here is a brief overview of eight major events this week that will shape the market.

Tuesday 9

The main event on this day will be the speech by the ECB President Mario Draghi. After clarifying that the Outright Monetary Transaction is ready to buy bond from governments in the region, Mario Draghi is expected to add more pressure on Spain to request for bailout and sign the contract.

Thursday 11

The other major reports will be on Thursday, with five reports expected on the day. The first one will be the Australian employment data which will be released at 0030hrs GMT. Unemployment in August dropped to 5.1 percent against the market expectation of an rise of 0.1 percent. The data from the labor department will spark speculation about the RBA move on its monetary policy. The market is expecting a 0.2 percent rise in unemployment. On the same day, the G7 meeting will commence with the exchange rate one of the major topics to be discussed.

The third major event of the day will be the US Trade Balance report which will be released at 1230hrs GMT. The trade deficit expanded in July to $42 billion which was lower than the market expectation of $44.2 billion. The market is expecting a further expansion to 43.9 billion this time round. At the same time, the US Unemployment Claims data will be released. The figures were less than projected last week, coming in at 367k against an expectation of 371k. This time, the market is expecting a drop to 366k. Lastly, the US Federal Budget Balance at 1800hrs will be the final major report for the day. The Federal budget is expected to decline to $4 billion.

Friday 12

Two major reports on this day are expected –the US PPI and the US UoM Consumer Sentiment. At 1230hrs GMT, the US PPI report will be published and the market is expecting a rise if 0.8 percent. The US UoM Consumer Sentiment will be released on Friday at 1355 where a decline from 78.3 reached last time is expected to 77.9.

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