What is a Economic Calendar?
Utilize our Forex Economic Calendar equipped with fast real-time streaming data to ensure that you stay well-informed about significant upcoming economic events that have the potential to impact market volatility.
Governments and various sectors worldwide are consistently measuring and reporting on economic growth and data. A dependable economic calendar stands as one of the essential tools for traders.
When key employment data, such as the US Non-farm payrolls, is released. It can generate substantial moves and price gaps in currency pairs like the EUR/USD. For instance, if prices gap by 50 pips, it implies that within that range, liquidity is scarce, making it impossible to exit or enter trades momentarily.
It can be risky to have trades open during major economic or geopolitical news announcements. Within seconds of such news events. High volatility can arise, and being aware of these events through a forex economic calendar with fast streaming data is crucial to anticipate potential price spikes.
How to Utilize the Forex Economic Calendar
At the start of each trading week, it is vital to check the economic calendar for upcoming high and medium impact events by observing the corresponding impact icons next to the event names. High impact events are indicated by a red icon, while medium impact events are represented by an orange icon.
The Impact value on the calendar signifies the potential influence of that particular report on the market. If the released data significantly deviates from the forecast or expectations, the impact may be realized. Conversely, if the data aligns with expectations, the report may have little to no impact.
Traders typically consult the upcoming economic events on the calendar for two main reasons. Firstly, to avoid having open trades during periods of potentially high volatility. Secondly, to leverage that volatility and identify favorable entry and exit points for new or existing trades.
Most Economic Calendars Display The Following Crucial Values:
Previous Month Value – Reflects the results of the previous month, which may be subject to changes due to adjustments made retrospectively. This unexpected alteration can trigger volatility.
Forecast or Consensus Value – Represents the forecast based on a consensus among economic analysts.
Actual Value – Indicates the actual reported value, which may cause volatility if it significantly deviates from the forecast.
Impact – The potential impact magnitude of a report is illustrated by a colored icon adjacent to the event name. A red icon signifies high impact, while an orange icon denotes medium impact.