5 economic events you don't want to miss
Economic calendar summary
European inflation rates (France, Italy, Germany, and the entire Euro Area) will likely make headlines and potential waves in euro-based forex pairs if the data comes in at unexpectedly high or low levels. EUR/USD traders might want to watch for these economic events as they could create added volatility for the major pair.
Also, a Nonfarm Payrolls number from the US and GDP number from Canada could bring some interest to North American currencies UAD and CAD, respectively.
Inflation Rate - Germany
Time: 8:00am ET Wednesday, May 31st
Previous: 7.2%
Expected: 6.5%
German inflation will likely be a precursor of what could be expected later in the week for Eurozone inflation (see below) as Germany is the largest economy factoring into the region. With that, a similar relationship of high inflation potentially leading to a stronger euro, and vice versa, could occur at the German inflation data release prior to the Euro Area's.
GDP Growth Rate - Canada
Time: 8:30am ET Wednesday, May 31st
Previous: 0.0%
Expected: 2.5%
Canadian GDP is expected to come in higher than previous readings, which could mean CAD appreciating against the USD - USD/CAD rose to 1.3600 in recent trading. However, if Canada cannot meet these expectations, it could send Canadian dollars even lower versus US dollars.
Inflation Rate - Eurozone
Time: 5:00am ET Thursday, June 1st
Previous: 5.6%
Expected: 5.5%
Inflation has trended lower in most major economic regions, including the Euro Area. That said, US inflation data has not fallen down to the 2% target from the Fed, and, similaraly, Eurozone inflation has stayed sticky around 5%. If the number comes in higher-than-expected, higher rates and bullish EUR/USD action could occur for the Euro Area; the opposite effect might be expected if the number comes in lower.
ISM Manufacturing PMI - US
Time: 10:00am ET Thursday, June 1st
Previous: 47.1
Expected: 47.0
US Durable Goods data was higher than expected recently, and US data in general has been trending higher; this trend has coincided with USD pairs moving in the bullish direction for US dollars in the last couple weeks. More bullish data could mean more USD appreciation, while the opposite could mean some backtracking is in order for the dollar.
Nonfarm Payrolls - US
Time: 8:30am ET Friday, June 2nd
Previous: 253k
Expected: 190k
June's Nonfarm Payrolls (NFP) and US Unemployment Rate could be important for guiding future price action for US dollar forex pairs with US data trending in the bullish direction of late. A higher-than-expected NFP number above 200k could be cause for a further USD rally, while a lower-than-expected reading closer to 150k could send USD lower from its recent highs.
How to trade economic events
- Open an account to get started, or practice on a demo account
- Choose your forex trading platform
- Open, monitor, and close positions on forex pairs
Trading forex requires an account with a forex provider like tastyfx. Many traders also 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 tastyfx’s YouTube channel. 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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