forex calendar
A forex economic calendar is the perfect tool for traders who want to use fundamental analysis to shape their trading strategies. The calendar includes real-time economic events, such as Central Banks’ monetary policy reports and interest rate decisions as well as various macroeconomic releases or indicators from multiple countries. Here we will focus on offering a comprehensive look at what a forex calendar is, how you can use it when trading and what are its benefits. Forex traders traditionally use a forex calendar to time the trades strategically, so they can plan ahead and manage risk.
Traders use an economic or forex calendar to learn and understand the impact of economic data such as when a country’s GDP, PMIs or employment data will be released and what effect this release might have in the market and on the currencies they are trading. Very often, economic indicators from other countries might affect the currencies of another country, due to the countries close trading or geopolitical relations. Commodity currencies such as the AUD or the NZD are usually affected by economic releases out of China. Updates about Brexit can affect both the GBP and the euro as both sides are involved in the post-Brexit agreements or discussions over specific trade deals.
So, an economic calendar is a great source of understanding how political, economic and other events might move the markets. The more you understand how currencies are influenced the easier it will become to prepare your forex trading strategy and anticipate market movements. A forex calendar should also be used with other research materials and traders usually read technical analysis charts to have a more all-around understanding of currency movements.
On a forex calendar, traders can easily detect the events that matter as they are usually graded low, medium and high with corresponding colours such as yellow, green or red. Traders can also see previous readings and consensus readings of an event so they can speculate more accurately on the outcome. You can view upcoming events for the next week or today’s and tomorrow’s releases. You can also customise it by clicking on different time zones, events or currencies. If you click on each event, you can get more detailed information about it and how it affects the market.
Benefits of a Forex Calendar
There are many benefits to using a forex economic calendar such as managing risk and planning your trades ahead of time. You can also customise and have access to more filtered content. If you can time your trades and plan ahead of time, you can prepare for unexpected market movements and currency fluctuations. In terms of risk and managing the difference between your entry price and stop loss price, using an fx calendar means that you can have better control over your finances and trades.
You can also identify future market-moving events, understand what moves the market and what are the biggest global events. Most traders check a Forex or economic calendar in order to identify high volatility data and better manage their trades so they can be sure when is the best time to join or exit a trade. This way, you can adjust your trading strategies and make the right investment decisions.
Additionally, you can keep up-to-date with events and become acquainted with political and financial events that have an impact on that country’s currency.
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You can also identify future market-moving events, understand what moves the market and what are the biggest global events. Most traders check a Forex or economic calendar in order to identify high volatility data and better manage their trades so they can be sure when is the best time to join or exit a trade. This way, you can adjust your trading strategies and make the right investment decisions.
Additionally, you can keep up-to-date with events and become acquainted with political and financial events that have an impact on that country’s currency.