economic calendar A calendar used to announce financial or political events that may affect the price of an item or an entire market. Typically, upcoming events are announced on the economic calendar once a week. During peak hours, the economic calendar is updated every day in real time. You can also participate in trading at reputable forex brokers to get the first news from the exchanges.
Discover the economic calendar
The economic calendar is considered one of the effective tools in forex software to be able to make market assessments and analysis through published information, used by many traders because it is very effective. This is a form of news summary, showing the time of its release and its impact on the specific currency. The calendar includes all upcoming important events, based on which traders can predict future price movements.
News on the economic calendar comes in many varieties and has varying degrees of market impact. These types of news include: Speeches, economic reports, central bank meetings, etc. They are divided into three categories based on the level of influence: Low, Medium and High. The more significant these events are, the higher level they will be after they happen, which will have a big impact on the market. This should be taken into account by traders in forex trading, in order to be able to make profits and limit unnecessary risk.
Prices can fluctuate a lot after economic and political events, prices can go up or down in the forex market, and some people usually choose this time to trade. While others seek to avoid the moment. Whether to trade or not trade at the time of the news announcement largely depends on the strategy the trader uses. Typically, short-term traders avoid this moment to trade.
Also, you can take a look at some of the most effective Forex technical analysis software
A Beginner's Guide to Using the Economic Calendar
The economic calendar is designed with an easy-to-read interface and approach. The calendar is presented in a table with columns and rows showing detailed information about the news.
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Let's take a look at the economic calendar which will have the following sections:
- Publication date: The date on which the news below will be published.
- Time: The time remaining before the event occurred and the times when the events occurred.
- Coin: The currency will be affected by the news.
- Importance: This column represents the importance of news: Low, Medium and High.
- events: Event name, if you want details, left-click the event.
- Reality: Value of money at the moment.
- Forecast: Expected value after the announcement of the news.
- Before: Previous value.
- time zone: Here you choose the appropriate time zone. The time zone in Brazil is +7.
Influential news should pay attention
Often, news marked as mids and highs will strongly affect the price movement. The news could cause drastic price fluctuations.
- Changes in key interest rates.
- Inflation data.
- country's economic growth.
- Change in employment and unemployment.
- Business activity index in all sectors of the economy.
Nonfarm Payrolls is a very important economic indicator for the US, the dollar reacted to this news very strongly. As this news shows a change in the number of people working in the non-farm sector, the release of the non-farm payroll is seen as an important indicator that changes the market.
Weather forecasters' statistics will also have a significant influence on market fluctuations. Therefore, traders should monitor the daily news in advance and avoid unexpected price movements.
For traders who are using technical analysis and trading on short timeframes, it is advisable to keep an eye on the economic calendar every day and avoid trading on the news. As the market is very unpredictable at the time the news is announced, it is possible for the price to go up and immediately go down, the chart appears with very long candles sweeping its stop loss.
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Conclusion
Through this article, we provide you with information about what the economic calendar is, as well as instructions on how to view the economic calendar for newcomers. The economic calendar is an important tool for any trader involved in trading the structure of the forex market. You should monitor it every day to make your own trading decisions at the right time. If you are a beginner, you can consult the free forex signals provided. In the next article, we will learn how to manage your investment capital by calculating Forex pips.
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