Current and Upcoming Economic Events
What is an Economic Calendar ? Why When and How to Use
Investors use an economic calendar to track market driving activities such as global forecasts and monetary policy decisions.
Market-moving activities, usually reported or released in a journal, are extremely likely to affect the foreign exchange markets.
Typically, an economic calendar is presented as a chart displaying the days, weeks, and months of a given year. Each day, many market-moving developments are reported in chronological order, allowing traders time to prepare and await the new releases they are interested in.
The economic calendar refers to the dates of major releases or activities in the system that may influence the movement of individual security rates or markets in general.
Investors and traders use the economic calendar to schedule transactions and fund reallocations, as well as to be ready for chart trends and metrics that may be triggered or influenced by these activities.
Multiple financial and business websites provide the economic calendar for various countries for free.
Why use an economic calendar ?
The economic calendar is one resource which is essential to a success when trading Forex.
By using the calendar, a trader can gain a greater understanding of why the market is moving in any direction, while at the same time being able to predict these movements.
The largest market-moving events in general appear to be the announcement of important economic data such as GDP, and the non-farm payroll number in the US.
While not all of the market’s reactions to these announcements can be anticipated they offer excellent trading opportunities.
Traders and investors are dependent on the economic calendar to provide them with knowledge and incentives to trade.
Traders frequently have time to switch into or out of positions to coincide either with an announcement of some event or with the high amount of trading that often precedes a scheduled notice.
It can be particularly helpful for a trader who wants to take a short position following the economic calendar.
If the trader correctly predicts about the nature of the announcement, they will open the position immediately before the announcement is scheduled and then close it within hours of the announcement.
An easy but efficient way for traders to keep track of the details from events, news or announcements is to an economic calendar have at their fingertips.
Through using such a critical trading device, traders are able to track important economic and non-economic indicators that can provide market direction clues and also be aware of all the developments that are likely to affect a specific currency’s shift.
Check your economic calendar every morning before you begin trading, and note the times of the major releases of data.
News And Analysis
How to Use the Economic Calendar ?
Trade and financial market investment need technological and analytical skills.
In general, the technical analysis helps to find the reason why the price moves where it is moving to while the fundamental analysis tries to figure out why the price moves.
This could be a big economic event, the newly released study, or a major announcement.
Good thing is, the economic calendar will help alert you in advance when the news is coming out. This will allow you to plan yourself and change your trade accordingly.
The economic calendar is a straightforward timetable, established in advance and as many websites give it, it is free to be found on the Internet.
One may simply go online to get access to the live economic calendar.
There are several forex exchange websites that deliver the economic calendar and every trader needs to know how to it.
Many Forex and CFD brokers have as part of their network Economic Calendars, which means its incorporated and you can find it without leaving the broker website.
This calendar is simple to use and to interpret because it has specific rules showing:
- the date the economic news is published; the currency that will be affected;
- the normal interpretation (how will the currency change depending on the actual news released);
- the value of the economic release;
- the history of the economic release as a trader can go back in time to see what happened in the past
This way a chart can be plotted and possible tops or bottoms can be identified in a trend, as well as growth or weakness.
Below are the basics that make up a standard economic calendar and how to read it :
If you look at an economic calendar, you’ll find provision for the day before, today and total for the whole week.
So, if you need to look for comparison at the pattern or previous data, then you can simply pick the time. Even if that’s for the whole week.
All you need to do is pick the correct time span and the calendar shows it for you.
There is a time zone setting in the top right corner which you need to choose according to your time settings. You can also choose according to your charts or trading platform.
The first extreme left column reflects the event start modified time which will automatically update itself.
The details about the country’s origin and currency of the data release is listed in the currency column. This also shows the country’s economy too.
It helps to know which currencies or currencies are likely to be impacted when the news comes out. The currency can be marked by the flag colour, and the currency can always be put beside it.
If you are interested in a specific currency then just click on it to see the specifics of the news.
The specific news affects the country’s economy, its forex market and its currency value differently. This can be differentiated by its volatility point.
Here, three default colours – red, yellow, and orange – reflect the volatility level.
Yellow. – Suggests that the volatility has a very slight effect and is unlikely to have a major impact.
Orange. – Suggests that the news can change in the future, depending on the actual values released compared to the predicted value.
Red. – It notes that market analysts expect the data to drive the forex market.
When do you use the economic calendar ?
An economic calendar shows all the details in the form of charts displaying a given year’s days, weeks, and months.
A live economic calendar will provide you with updates on main economic indicators that are highly likely to affect financial markets.
Many investors / traders review the economic calendar every morning, before trading starts, and monitor the dates of major releases of the data.
However, a trader must know what information or activities to pay close attention to in order to benefit from using an Economic Calendar to the full.
Such a trader will stay on top of the release of important news and behave in such a way that they will have taken positions and even predicted the value of the currency pair they want before those announcements are made.
By carefully observing an Economic Calendar, a trader can tell which news releases are important and which ones are not of interest with respect to the currency pair or product you are trading.
If you are trading forex, futures, or stocks, an economic calendar is important to you.