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What is the Point of the Economic Calendar?

The economic calendar is a list of the most important economic events. Expected news, publication of reports, and other developments may have a tangible impact on the financial and exchange markets. If analysing this data properly, one can appear in the right place at the right time and get a considerable profit.

The traders who actively use the fundamental analysis in their work should be able to correctly interpret the data in the economic calendar. One should also take into account an importance of the events for assessment of their impact on the market dynamics. It is possible to obtain the following information from the reports incorporated in the economic calendar:

  • GDP growth;
  • Unemployment rate;
  • Retail sale volumes;
  • Interest rate change;
  • Consumer expenditure;
  • Inflation index.

This is the key data one can base one’s forecasts on but should not be confined to.

At the occurrence of important events from the Forex economic calendar, the market volatility reliably grows. Often, at the market entry, an event of high or medium importance is the only possible condition for a trend emergence.

Novice traders are not recommended to trade in the market which is “stormy” against some important news release, such as announcement of unemployment rate in the USA, intervention, and statement by a Central Bank Head. The work should be postponed for at least 20 minutes prior to the news release and 20 minutes following it. To those traders who do not feel absolutely confident, we advise to transfer deals to no-loss.

Experts also admit that all the news related to the dollar rate this way or another affect all currencies and gold. After this news is published, one should track the dynamics of all key currency pairs and pairs with the dollar and gold. If the news relates to euro quotes, it will affect pairs with the euro only. The news on other currencies works in the same way, exceptions are quite rare.

It should be borne in mind that any currency movement, either weak or strong, following the news release depends on the technical analysis and not on pure indicators. The market will certainly win back the data value as compared to forecasts. If the news data contradicts the technical analysis, this presents a very strong sign of a trend change.