At the start of every trading week, we comb the upcoming economic calendar for the highest-impact items in the world. Find out what’s coming up next.
Economic calendar summary
The US and Euro Area each raised interest rates last week. The Bank of England and the Reserve Bank of Austalia decide this week - each projected to raise 25 bps. Both countries surprised at their last meetings - England raised 50 bps instead of 25 and Australia decided to hold instead of raising.
Also this week, Japan and Switzerland share economic data in a market where USD/JPY and USD/CHF are nearing price extremes. Traders can continue monitoring US dollar pairs daily with US nonfarm payrolls closing the week on Friday.
Unemployment Rate - Japan
Time: 7:30pm ET Monday, July 31st
Last week the Bank of Japan held interest rates constant, but spoke to higher flexibility in monetary policy going forward. With no expected change in unemployment data, even a 0.1% change could move JPY pairs that have been hit hard over the weekend.
Interest Rate Decision - Australia
Time: 12:30am ET Tuesday, August 1st
Earlier this month, the Reserve Bank of Australia elected to keep interest rates at 4.1%. Although inflation data last week was lower than expected, the RBA is still projected to raise rates by 25 bps.
Consumer Confidence - Switzerland
Time: 3:00am ET Wednesday, August 2nd
Traders will look to quarterly consumer confidence data out of Switzerland given recent strength in CHF. The past two quarters, predictions have missed by an average of 5.65 in either direction - another mishit could cause price action in USD/CHF and other franc pairs.
Interest Rate Decision - UK
Time: 7:00am ET Thursday, August 3rd
The Bank of England is expected to raise rates for the 14th consecutive meeting. The BoE surprised in June by raising 50 bps instead of the forecasted 25 bps. Traders will likely moniter GBP/USD as another surprise 50 bps hike would match the US's interest rate at 5.5%
Nonfarm Payrolls - US
Time: 8:30am ET Friday, August 4th
Employment data from the US is the first major data release since raising interest rates. Payrolls came in lower than expected in June, and higher than expected in May - traders will aim to profit off of another mishit across USD pairs.
How to trade economic events
1. Open an account to get started, or practice on a demo account
2. Choose your forex trading platform
3. Open, monitor, and close positions on forex pairs
Trading economic events with forex requires an account with a forex provider like IG. Many traders watch major forex pairs like EUR/USD and USD/JPY for potential opportunities based on economic events such as inflation releases or interest rate decisions. Economic events can produce more volatility for forex pairs, which can mean greater potential profits and losses as risks can increase at these times.
You can help develop your forex trading strategies using resources like IG’s Trading Academy. Once your strategy is developed, you can follow the above steps to opening an account and getting started trading forex.
Your profit or loss is calculated according to your full position size. Leverage will magnify both your profits and losses. It’s important to manage your risks carefully as losses can exceed your deposit. Ensure you understand the risks and benefits associated with trading leveraged products before you start trading with them. Trade using money you’re comfortable losing.
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