An Economic Calendar

On our economic calendar, you will find a schedule of key economic events, data releases, and announcements that can influence financial markets in real time. It’s your source for staying on top of important happenings across global markets, allowing you to make informed and timely decisions.

Keep reading to learn how you can benefit from this powerful tool.

What You’ll Find in an Economic Calendar

• Event dates and times
• The country or region impacted
• A description of the event
• Past data and forecasted figures
• Actual results when released
• The event’s impact level (low, medium, or high)

These events include central bank meetings, employment reports, inflation data, and many more. All of these give valuable insights into economic trends that can spark market movements.

How to Make the Most of an Economic Calendar

1. Focus on relevant countries, currencies, or events based on your trading strategy.
2. Plan ahead: Check the calendar regularly so you can adjust your strategy before key events.
3. Analyze the outcomes: Compare actual figures with forecasts to predict market reactions. When the actual number beats the forecast, relevant assets typically rise in price. Alternatively, if the report is lower than forecasted, a drop in price may be expected.
4. Pair the calendar with other sources: Combine it with technical signals or other reliable resources to gain a comprehensive understanding of market drivers.

Why You Need an Economic Calendar

Economic calendars are crucial because they:

1. Help manage risk: Anticipate market volatility and adjust your investments accordingly.
2. Enable informed decisions: Access timely data to make better trading and investing choices.
3. Reflect market sentiment: Show how markets react to economic indicators, providing insight into overall sentiment.
4. Aid in long-term planning: Use the calendar to anticipate economic trends and adjust your portfolio accordingly.

Popular and Impactful Events in an Economic Calendar

1. Central Bank Interest Rate Decisions: Major banks like the Federal Reserve and European Central Bank announce interest rate changes, impacting currencies, bonds, and stock markets.
2. Gross Domestic Product (GDP) Reports: Reveals the overall economic growth of a country. Strong GDP boosts investor confidence, while weaker figures may trigger sell-offs.
3. Non-Farm Payrolls (NFP) Report (U.S.): A major indicator of U.S. economic health, showing the number of jobs added or lost.
4. Inflation Data (CPI & PPI): CPI measures consumer price changes, while PPI measures price changes from the producer’s perspective.
5. Employment Reports: Includes unemployment rates and jobless claims, important indicators of economic health.
6. Retail Sales Data: Shows consumer spending, a key driver of economic growth.
7. Manufacturing & Services PMIs (Purchasing Managers’ Index): Indicates the health of the manufacturing and services sectors.
8. Trade Balance: Shows the difference between a country’s exports and imports.
9. FOMC Minutes: Provides insights into the Federal Reserve’s economic outlook and interest rate decisions.
10. Crude Oil Inventories (U.S.): A weekly report that influences oil prices and related markets.

How to Profit from Using an Economic Calendar

1. Event-driven trading: Create strategies around major events and capitalize on short-term price changes.
2. Fundamental analysis: Use data to gauge the long-term outlook of assets like currencies and commodities.
3. Volatility trading: Trade during high-volatility moments, such as during economic data releases.
4. Correlation trading: Identify patterns in how different assets react to events.
5. Positioning: Set up trades in anticipation of upcoming events, based on your analysis of potential outcomes.

The “News Reaction” Strategy

Objective: Take advantage of price movements immediately after key economic events.

Steps:

1. Choose high-impact events like central bank decisions, GDP reports, or employment data (e.g., U.S. Non-Farm Payrolls).
2. Check the forecast: Compare predicted numbers to past data.
3. Prepare before the event: Monitor price action 10-15 minutes before the event.
4. Set entry triggers:
   • If results are better than expected, go long.
   • If results are worse than expected, go short.
5. Use tight stop-loss: To manage risk, set a stop-loss order near your entry price.
6. Exit quickly: Take profits within minutes to an hour after the event.

Example:

• Event: U.S. Non-Farm Payrolls (NFP) Report
• Forecast: 150,000 new jobs
• Actual: 200,000 jobs (better than expected)
• Action: Buy the USD or a U.S. stock index immediately after the release and exit quickly.

Mastering the use of an economic calendar, paired with risk management, can give you an edge in understanding market movements and improve your trading success.