What is Forex economic calendar and how to use it in trading?
Forex calendar helps to follow the news and other important publications that are released during trading sessions. These are fundamental data that affect the prices of market instruments, and that is why the economic calendar is one of the main tools for analyzing the market in real time.
Follow financial market news in one place
How to use Forex calendar?
There is a well-established algorithm for using the Forex economic calendar, suitable for any trader:
- At the beginning of a new trading day (or the day before), a trader opens the economic calendar and marks important macroeconomic news.
- If a trader has sufficient experience, he analyzes other macroeconomic data, the reaction of other market participants to them, as well as the impact of this information on the price dynamics of quotes. It is also important to familiarize yourself with the opinions of market experts and more experienced traders, find comments and advice from independent experts on the Internet.
- Immediately after the release of news and their assessment in the economic calendar, the trader checks the published data with the forecast and makes a decision to invest in accordance with the conclusions. It should be reminded that under any circumstances and in any market condition it is necessary to carefully consider your actions.
If the news has a positive content, i.e. its value is higher than the forecast median, it is possible to make a decision to buy the currency whose quotes are most sensitive to the macroeconomic content of the news.
If the news has a negative content, i.e. its value is below the forecast median, a decision may be made to sell the currency whose quotes are most sensitive to the macroeconomic content of the news.
Very often published news is of great importance not only at the level of the Forex market, but also of the world economy. Regularly occur such events as changes in the level of rates by central banks (regulators), publication of statistics on inflation, number of employees in large companies, etc. Such data, if made public, can direct Forex asset quotes into the area of long-term trends. Both directly and indirectly such information can be part of the sphere of interest of investors who use publications in the economic calendar for long-term forecasting and investments.