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
Global inflation data releases throughout the week, beginning with Canada followed by the UK and Japan. The UK has the longest way to go in the fight against inflation – last month reporting 7.9%.
Japan also reports GDP growth Monday night as JPY continues to weaken against US dollar and the euro. EUR/JPY hit a 15 year high last week and continues to trade above 158.00.
From the US, FOMC meeting minutes arrive Wednesday amidst a surge in USD across major pairs.
GDP Growth Rate - Japan
Time: 7:50pm ET Monday, August 14th
Japan's GDP is expected to increase 0.4% after beating expectations in the first quarter of 2023. The Japanese yen could benefit from any indication of economic strength - USD/JPY is through highs dating back to November 2022.
Practice trading economic events using a demo account
Inflation Rate - Canada
Time: 8:30am ET Tuesday, August 15th
Canada's previous inflation reading of 2.8% was the lowest since March 2021. This month, inflation is expected to bounce back to 3.0%. Deviation from the forecast could send price action into USD/CAD which has recently rallied to trade above 1.3450.
Inflation Rate - UK
Time: 2:00am ET Wednesday, August 16th
Inflation in the UK is expected to drop over a percent after a rate hike from the Bank of England at the beginning of the month. A less-than-expected drop could send strength into GBP/USD while a greater drop could signal weakness in the pair.
FOMC Minutes - US
Time: 2:00pm ET Wednesday, August 16th
With the next FOMC meeting not until September, traders will look to the release of last meeting's minutes for any information that could indicate the future of US monetary policy.
Inflation Rate - Japan
Time: 7:30pm ET Thursday, August 17th
Like GDP earlier in the week, inflation is expected to rise slightly in Japan. Forecasts could change in the middle of the week pending unexpected GDP data Monday night.
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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