Skip to content

Why Using an Economic Calendar is Important?

One of the tools that is essential to the success of trading Forex is the calendar of economics. Utilizing the calendar, the trader can gain an understanding of the reasons the reasons why the market moves in a certain direction and simultaneously they will be capable of anticipating these movements. In general the most significant market-moving events are the release of crucial economic information like the GDP and US non-farm payroll figures. Although not all responses of the market to these announcements are predictable, but they are a great source of trading opportunities.

What are the key indicators to look out for in the economic calendar?

Expert traders analyze the economic future every day in order to anticipate the course of a certain currency pair. They generally stay ahead of announcements about significant events and then take the action in a specific manner, so that when an announcement is announced, they have already calculated the worth for the particular currency pair that they’re most interested in. An easy, yet effective method to ensure traders are aware of any information from announcements, news or other announcements is to have an economic calendar available. Utilizing this vital trading tool, traders can to keep track of important economic and non-economic indicators that could provide clues about what direction the market is heading. They can be aware of the happenings that are likely to affect the direction of a specific currency.

There are a variety of methods to maintain an economy calendar. Most commonly, you utilize an online system for managing calendars that updates information on a regular basis and then instantly presents all the details to users.

If you look at the calendar, an aspiring trader is likely to be able to see that the data is organized in several columns, sorted by country, indication of the indicator’s name and its influence (or significance) of the indicator, along with values for the current period as well as forecast value and values for a prior period.

It is important to note that various countries have different influence in the world’s markets. For instance, since over the last decade, nearly two-thirds of the total Reserves of foreign exchange allocated to nations around the world have been accounted for using US dollars, the currency is considered to be the status of a reserve currency. Since as the United States accounts for a large portion of world currency trades, major economic developments and announcements directly from US-based entities U.S. usually cause the most significant impact on the market for currency as well as on currency pairsthat don’t include the US dollar.

Indicates that are different

There are two kinds of indicators that take into account the time aspect that every trader should keep in mind: indicators that lead which tend to change prior major economic changes and, consequently they can be used to anticipate future trends. indicators that are lagging, and reflect how the economy has performed in the past and modifications to these indicators can be identified only when a trend or pattern has been created.

One example of a leading indicator is the Retail Sales. leading indicators are the unemployment rate.

In addition, indicators are typically separated into three categories according to their impact on the economy and the fluctuations they could cause. Every ปฏิทิน เศรษฐกิจ forex platform has its own approach to evaluate these indicators. has designed its own calendar of economic indicators by classifying these indicators according to the amount of the amount of volatility they could cause on the markets.

A key indicator is the country’s GDP (Gross Domestic Product) in that it measures the value of all the goods and services made within a specific nation. PMI (Purchasing Manager’s Index) examines the manufacturing process and is often regarded as an indicator of higher impact. The other indicators closely watched include Initial Jobless Claims, Unemployment rate, Consumer Confidence Index, home sales, durable Goods Orders and much more. We will discuss all of them in the next section of our guide.

Not as significant, yet nevertheless important data is provided through indicators like housing beginnings as well as those from the Beige Book report, Business Inventories and Factory Orders. Average Hourly Earnings, the Federal Budget Balance etc.

Two other indicators that are highly anticipated to use for Forex Market analysis include the Producer Price Index (PPI) and the Consumer Price Index (CPI) which are the prices that are average for consumers and producers of services and goods. These are considered to be the most reliable measure of the inflation rate within a nation.

What can we do with the information?

Market participants typically compare current data with figures from the previous period as well as taking into consideration analyst estimates of the information. By putting these three data points together, traders are aware that new data either disappoints or exceeds expectations. This will decide their next step on the market.

Political announcements and economic announcements could also trigger a change on the course of a specific currency pair, often in a matter of minutes. Utilizing the economic calendar traders can be aware of a potential change more quickly and react faster than other traders on the market.

When a trader realizes that the release date of the report in question is coming up the first thing he/she should consider is be whether the release is likely to trigger volatility and how high. The way a trader reacts to an announcement is based greatly on where the trader is positioned and the location of his/her the protective stops. This is why indicators that are leading can be so vital to one’s choice. Forex traders are able to earn by having information beforehand, as it allows them to predict the potential course of the currency pair that they want to trade.

As you become more knowledgeable of Forex trading fundamentals, you’ll be ready to take your knowledge to the next step and fully comprehend every one of the important economic statistics released every trading day. This guide will walk you through every closely-watched economic indicator of analysts, describing how it fits into the entire picture.