The Importance of an Economic Calendar for Day Trading

Many technical traders make the mistake of thinking that, because they take a technical approach to the market, they don’t have to pay attention to news events. The Forex Factory Calendar is by far the most user-friendly and accurate calendar to keep track of Forex-related news forex trading events. By the end of this tutorial, you will know how to use the calendar as well as how to read it in a way that is beneficial to your trading. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds.

You should consider whether you understand how this product works, and whether you can afford to take the high risk of losing your money. IG International Limited is licensed to conduct investment business and digital asset business by the Bermuda Monetary Authority and is registered in Bermuda under No. 54814. Economic reports are often the backbone of forex traders’ movements and decisions and a broker forex provides all the information available for economic reports in the form of leading and lagging indicators. The forex market is further driven by many economic and political factors that strongly impact the value and strength of the currency of every country. Such factors are usually reflected by a forex calendar that provides information for both major and minor changes.

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By now you should have the time zone, filter and time frame set for your calendar. You should know how to view forex trading additional details of a news event as well as which events are most likely to cause an increase in volatility.

In general, there are two main categories of events highlighted by the forex trading and these are the predictions of future financial and economic events and the reports of recent financial and economic events. An online forex calendar is one of the most common ways to keep up with key economic and non-economic events. The online tool provides a lot of comfort by updating all the data and information in an automatic way so users have access to information 24/7. They invest enough time and energy into examining and exploring future economic events that can affect the forex market. The Economic Calendar notes the currency that is particularly influenced by the event in question.

Changes in the volume of the physical output of the nation’s factories, mines and utilities are measured by the index of the industrial production, released by Singapore Department of Statistics. Rising industrial production figures signify increasing economic growth and can positively influence the sentiment towards local currency. The Import Price Index released by Statistics Finland informs the changes in the price of imported products into the Finland.

forex calendar

International Trade, Capital Markets, Political Impact, Economic Releases have all a major impact on a nation’s economy followed by the economic outlook for a country and resulting in affecting the forex marker too. The impact of the forex calendar can be partly as in just effecting some currency pairs or as a whole, some events may be so big they impact the whole market. In a nutshell, the forex calendar is the schedule of significant dates and important pre-scheduled events during the year that is expected to have an impact on the markets. The scheduled disclosure of economic reports, official statements and statistical data often act as catalysts for enhanced volatility facing the valuations of currencies.

By now you should know how to configure your Forex Factory calendar as well as how to manage news forex events. Let’s finish up this tutorial by discussing how price action plays a role in all of this.

#3: Forexlive Economic Calendar

It’s incredibly easy to use and is one of the more accurate calendars out there. broker forex Plus, you can enter your timezone so events are displayed in your local time.

  • The Gross Domestic Product released by Statistics Norway is a measure of the total value of all goods and services produced by Norway from the expenditure approach.
  • Normally, a decrease in the figure is seen as positive (or bullish) for the Polish Zloty, while an increase is seen as negative (or bearish).
  • Once you buy an option (paying the premium) your risk is capped—the premium you paid is the potential loss.
  • The expected volatility is reflected on most forex calendars in three colours where yellow stands for a lower impact, orange stands for medium impact, and red stands for high impact.
  • The real-timeEconomic Calendarcovers financial events and indicators from all over the world.
  • First and foremost, the news calendar should never be used as a tool to help you enter the market.

For active traders, being aware of industry expectations, actual data and the exact timing of the event itself are integral aspects to help manage risk and maximize potential opportunity. Perhaps the biggest question facing an economic event is its potential impact on market conditions. The Economic Calendar directly addresses this question through projecting the severity of pricing volatility using a color-coded scale. In both bullish and bearish markets there are opportunities – as long as you know which one is likely to set in and what changes it will bring along.

forex calendar

The risks of loss from investing in CFDs can be substantial and the value of your investments may fluctuate. forex trading CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

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Step 3: Setting the Event Filter

For instance, if the European Central Bank (ECB) is scheduled to make a public statement regarding the future of monetary policy in the Eurozone, the euro (EUR) is listed as the currency most likely to be impacted. A monthly report released by the US Department of Labor that provides statistical data about the current state of the US labor market. The weekly Commitments of Traders (COT) report provides information on the size and the direction of forex the positions taken, across all maturities, participants primarily based in Chicago and New York futures markets. Forex trades focus in «non-commercial» or speculative positions, to determinate whether a trend remains healthy or not, and also markets sentiment towards a certain asset. The Gross Domestic Product released by Statistics Norway is a measure of the total value of all goods and services produced by Norway from the expenditure approach.

forex calendar

The Bank Loans released by Reserve Bank of India measures the amount of lending by the domestic financial system. A high reading is seen as positive (or bullish) for the Rupee, wheras a low reading is seen as negative (or bearish). A high forex broker reading is is seen as positive (or bullish) for the Rupee, while a low reading is seen as negative (or Bearish). The Consumer Confidence released by the Istituto Nazionale di Statistica is a survey of the consumer opinions in Italy.

The Capacity Utilization released by TurkStat is the percentage of the Turkish production capacity which is actually used over the short-time period. Generally speaking, a high reading is seen as positive (or bullish) for the Lira, while a low reading is seen as negative (or Bearish). The Manufacturing Confidence released by the Central Bank of Turkey shows the opinion of manufacturing executives regarding production expectations, order books and finished goods inventories. A high reading is seen as positive (or bullish) for the Lira, while a low reading is seen as negative (or bearish). For statistical purposes, industries are categorized following a uniform classification code such as Standard Industrial Classification (SIC).

The higher the cost of imported goods, the stronger the effect they will have on inflation, making a higher probability of a rate rise. Therefore, a high reading should be taken as positive (or bullish) for the EUR, while a low reading is seen as negative (or bearish). Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events.