The Japanese yen experienced one of its most bullish trading days in recent weeks yesterday. The JPY made significant gains against many of its most traded currency pairs, such as the GBP and CHF.
As for today, there are no major economic data releases on the calendar from the U.S. However, Europe and Canada appear to be releasing the bulk of today’s news, which means we may see a day of trading with low liquidity and therefore increased volatility. Day-traders can take advantage of these intense trading days by swinging within the larger-than-normal price fluctuations.
Here are today’s leading events:
11:00 GMT: German Factory Orders
Previous: -3.4%. Forecast: 2.6%.
This monthly report measures the change in the total value of new purchase orders placed with manufacturers. As a leading indicator of production, this report has a direct correlation with the strength of the euro zone economy. Today’s forecast is expected to be higher than last month, indicating a positive return to economic normalcy is beginning to get underway. Such an outcome should boost the EUR.
12:15 GMT- Canadian Housing Starts
Previous: 170K. Forecast: 174K.
This report reflects the annualized number of new residential building that began construction during the previous month. If the end result will be positive, the CAD is likely to strengthen as a result.
