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At the start of today’s economic calendar there was a severe blow to the Australian dollar. Amid the horrendous floods presently afflicting the nation, the Australian employment change report also came out well below forecasts and, despite a decrease in the unemployment rate, traders appear to have responded with a sell-off of AUD.
Today’s busy calendar will have forex traders highly active in the upcoming European and American sessions. Britain and the euro zone will both publish their interest rate decisions along with monetary policy statements. The US will later publish its trade balance and weekly unemployment claims reports.
Here is a roundup of today’s leading events:
12:00 GMT: GBP – Asset Purchase Facility and Official Bank Rate
The release of the Bank of England’s (BOE) latest decision regarding its short-term interest rates and its Asset Purchase Facility will no doubt have a heavy effect on the value of the GBP. Predicting the movement of the British 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.
12:45 GMT: EUR – Minimum Bid Rate
Immediately following Britain’s announcement regarding interest rates is the same decision and announcement on the interest rates for the euro zone. The European Central Bank (ECB), as well as the BOE, both plan to hold interest rates steady, but trading tends to become highly volatile around the publication of this event. Traders should guard their positions with conditional orders today to defend against the expected volatility.
13:30 GMT: USD – Trade Balance and Unemployment Claims
The US will be publishing its recent monthly trade balance figure today alongside its weekly unemployment claims report. Given the moderate strength in the dollar lately, these two reports could help sustain those levels if they turn out better than forecast.
