Looking at the Economic Calendar for March 9-11, 2016 shows 11 high impact events which may cause Forex volatility in the days ahead. No doubt, staying abreast of these high impact economic releases keeps you aware of the long term effect on these currency pairs and the big picture for trading USD crosses.
March 9th – Canada, New Zealand.
First, we anticipate the BoC Interest Rate Decision on March 9th at 15:00 GMT to create some volatility for the Loonie and we advise you to trade with caution with entering any CAD trades on March 9th.
Next, the Kiwi Dollar has a series of releases at 20:00 GMT to include their quarterly Monetary Policy Statement which proposes the plan for the New Zealand Reserve Bank to achieve its targets. It is a busy day for the Reserve Bank of New Zealand as they also release their Interest Rate Decision and Press Conference with the Reserve Bank Governor. Be careful at this time as this may cause volatility on the NZD cross pairs.
March 10th – European Central Bank, United States.
The much anticipated European Central Bank Interest Rate Decision at 12:45 GMT will be released and is followed by the ECB Monetary policy statement and press conference. Whenever Mr. Mario Draghi speaks, the Forex trading world watches and the Euro Dollar can shoot up and down like a yo-yo. The smart traders hold their breath so as not to be caught in the middle of a volatility wave. Trade with caution at this time, and we recommend waiting until after Mr. Draghi speaks before jumping in on any supposed volatility.
Then at 13:30 GMT, we’ll see some USD volatility with the USA Initial Jobless Claims released by the US Department of Labor.
March 11th – United Kingdom, Canada.
At 09:30 GMT we will see the release of Consumer Inflation Expectations in the UK. The big talk in the news for the UK is the possible “Brexit” vote on June 23rd, so no doubt any high impact economic release coming out of the UK should be noted and watched and could influence the overall trend when trading the Cable.
Then at 12:30 GMT we will see the Canadian Unemployment Rate released by the Statistics Canada and Net Change in Employment.
Finally, the week will wind down at 15:00 GMT the Reuters/Michigan Consumer Sentiment Index release in the United States is the last high impact alert on the Economic Calendar before settling down for the weekend.
Why It Matters
It is important to not only be aware of the initial volatility that these releases may create so that you can adjust your risk management according and not be caught unawares. Further, these high impact alerts can certainly result in trading opportunities once the initial volatility wave has passed. At ForexSignal we will be monitoring the Forex markets and expect many trades to set up as this week’s volatility gains momentum.
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