An economic calendar is a resource that allows traders to learn about important economic information scheduled to be released. Such events might include GDP, the consumer price index, and the Non-Farm Payroll report. In today’s environment of fiscal cliffs and central bank intervention, it can be very helpful to know the date of the next central bank meeting or major news announcement.
The events on the calendar are graded low, medium and high, depending on their likely degree of market impact.
HOW TO READ THE FOREX ECONOMIC CALENDAR
Knowing how to read the forex economic calendar properly is important to maximize your trading prior to and following the most important releases. Checking the calendar every morning will allow you to familiarize yourself with the upcoming events that matter.
In default mode, the calendar will show you every piece of economic news coming out for the major economies. For many, that will be information overload, so you may want to customize the look.
CUSTOMIZING YOUR FOREX ECONOMIC CALENDAR VIEW
In order to customize the economic calendar, you can look at events in the past, today and in the future by clicking on buttons such as ‘Today’ ‘Tomorrow’ and ‘Next Seven Days’. It’s advisable to change the timezone to what you’re most comfortable with; this is done by clicking ‘Timezone’. For most, this will be Eastern Standard Time or GMT-4/GMT-5. Next, click the ‘Currencies’ and ‘Importance’ buttons to look at the events that are most relevant to you.
TOP BENEFITS OF USING A FOREX ECONOMIC CALENDAR
- Being able to manage risk effectively
- Being in a position to plan ahead
- Having access to extra, helpful features for customisation