How the Forex Economic Calendar is Essential to Traders

How the Forex Economic Calendar is Essential to Traders

The foreign exchange market is known to be unpredictable. However, imagine not having trouble getting your hands on everything essential in the industry. That’d be like having front-row tickets to major (and sure, minor, too) economic events.

From significant dates, release numbers, and detailed description to the currencies involved, the probability of a market crash, and a gazillion of information, you’re no stranger to the happenings. By easily getting a scoop of what’s going on in the business, via a forex economic calendar, your odds may just skyrocket.

What Is a Forex Economic Calendar?

A forex economic calendar is an economic tool that allows you to monitor economic events alongside different indicators. With it, among the things you can analyze are the market’s direction, the market’s next destination, and the factors that can impact your succeeding actions.

Although there are loads of pre-made ones available online, it’s suggested to make your own forex economic calendar. It’s a no-brainer task; all you need is to browse anticipated economic events and be diligent in inputting data to your personal tool. The advantage of this is uniqueness (i.e. only the information you need are stored). Also, due to the fact that you were the person behind it, the chance of you forgetting the contents is rather slim.

Economic Indicators Are Important

Having a forex economic calendar to follow is a lot like having the ability to leap from your current position to your intended point. Since you’ll have access to critical information prior to its release, you can prepare a solid defense before entering a trade.

For one, you’ll have the Gross Domestic Product or GDP as an economic indicator. Since it’s one of the most influential indicators, you’ll be presented a clearer idea of the market value of the economy‘s goods and services. Consequently, you can predict an incoming trend.

Other indicators in a forex economic calendar:

  • Consumer Confidence Index or CCI
  • Consumer Credit Report
  • Consumer Price Index or CPI
  • Industrial Production
  • Mutual Funds Flow
  • Personal Income & Outlays
  • Producer Price Index or PPI
  • Productivity Report
  • Trade Balance Report

You Know You Need It

A forex economic calendar is useful since it follows the principle that the more you know about forex markets, the higher chances you have of gaining profit. It grants you the opportunity be aware of market conditions, relevant news, announcements, and various factors that can affect price behavior. With all these in hand, you’ll have great clues regarding the best measures to take.