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Economic Calendar

The economic calendar, also known as a financial
calendar, can help you to identify the upcoming
events that are most likely to affect the markets
and assets you are trading.
The economic calendar, also known as a financial calendar, can help you to identify the upcoming events that are most likely to affect the markets and assets you are trading.

What is the Economic Calendar

The economic calendar can be a very powerful tool to trade with. It can help you to find new trading opportunities, adjust existing trades, or notify you when to stay out of the market altogether. The news events are not released randomly, but follow a schedule which is well planned and set out in advance so that all investors in the financial markets can observe them and decide how to trade them. The economic calendar is constantly being updated to reflect the latest economic news. This being said, we recommend that you check it regularly to stay on top of the latest events and developments that can directly impact market movement. It is important to note that when key figures are released, market conditions can become very volatile and this should be accounted for when making any trading decisions. The news releases on the economic calendar are published by both private organizations and a variety of government agencies alike. They are typically in the form of economic data, economic policies and political events from countries around the world. These news events provide a basis on which financial trading decisions are made.

Features of the Economic Calendar

Our Economic Calendar has features which traders should be familiar with.
  • Date:
    This column tells you exactly what time the news event is scheduled to occur. The time will automatically be in the GMT time zone. You can change to your local time zone by selecting the correct time zone from the drop down menu at the top of the economic calendar.
  • Time Left:
    This shows you how much time is left until the event starts, or if the event has already finished.
  • Event:
    This is where you can see which event is scheduled for release. On the left of the event name, you will also see the flag of its corresponding country. Some examples of events would be a Monetary Policy Meeting for the European Central Bank, or Japanese Industry Activity Index. While these type of events typically affect the currencies markets, or Forex, they can also have an effect on commodities, entire indices and even individual stocks.
  • Impact:
    The Impact Level refers to the significance of a given market event. There are four levels: High, Medium, Low and None. The more important the event, the higher the level of impact it will have on the markets.
  • Previous:
    In this section, you can find the most recent historical results of an event. You can compare previous results with the latest ones, allowing you to make economic projections on the direction of a nation’s economy or industries.
  • Date:
    This column tells you exactly what time the news event is scheduled to occur. The time will automatically be in the GMT time zone. You can change to your local time zone by selecting the correct time zone from the drop down menu at the top of the economic calendar.
  • Time Left:
    This shows you how much time is left until the event starts, or if the event has already finished.
  • Event:
    This is where you can see which event is scheduled for release. On the left of the event name, you will also see the flag of its corresponding country. Some examples of events would be a Monetary Policy Meeting for the European Central Bank, or Japanese Industry Activity Index. While these type of events typically affect the currencies markets, or Forex, they can also have an effect on commodities, entire indices and even individual stocks.
  • Impact:
    The Impact Level refers to the significance of a given market event. There are four levels: High, Medium, Low and None. The more important the event, the higher the level of impact it will have on the markets.
  • Previous:
    In this section, you can find the most recent historical results of an event. You can compare previous results with the latest ones, allowing you to make economic projections on the direction of a nation’s economy or industries.

How to Trade with the Economic Calendar

There are three elements that are most important when trading with the economic calendar.
The Schedule:
The essence of releasing the dates and times of each news release well in advance is to inform traders of when to expect each news release and to plan trades around those dates accordingly. You will always want to see times in your time zone. As previously noted, the time will automatically be in the GMT time zone. You can change to your local time zone by selecting the correct time zone from the drop down menu at the top of the economic calendar.
The Impact Grade:
This will help you determine what is worth trading and what is not. Generally, it is recommended only to trade high impact news items.
The Forecast:
The variation of the actual outcome of an announcement from the projected consensus numbers is what provides the basis of the volatility that can make a news item tradable or not. The greater this variation, the more movement we can expect in the currency or asset to be traded, and the more tradable the news will be. We have also identified that there are news releases which affect multiple markets. For instance, a crude oil based news release will affect the crude oil price, USD-based currency pairs and stocks of oil companies which trade or produce this product. So depending on which asset you are trading, you can use the numbers as you see fit.
To learn more about how to best utilize the economic calendar as part of your trading strategy