One of the main tools for working within the financial market is the international economic calendar for advanced traders. It reflects the most important macroeconomic indicators (events in different countries, the planned time of news, analytical forecasts, and previous values) that affect the quotations of major and correlated assets. The economic events’ international calendar contains everything necessary for fundamental analysis and trade on news. It will also be useful for traders avoiding news price fluctuations, to determine the greatest volatility period, when entry within the market is fraught with high risks, and building a trading strategy free from the news background.
The way of the international economic calendar’s usage
Like any other tool, the calendar of economic events stands in need of rational usage. With the ability to navigate within such a calendar quickly, you can significantly improve the efficiency of trade. Regardless of whether you trade or avoid news, open the economic news’ calendar before the beginning of each trading session and pay attention to the planned event’s time. By default, it is reflected in GMT, so if necessary (in case of manual configuration), for convenience, change the current time to a more appropriate one by specifying the corresponding time zone. The next point to pay attention to when analyzing the international economic calendar is the country where the report is published, the currency associated with it and the correlating assets.
The importance of an event is measured by the labels’ number (bullheads) standing next to its name. The more labels, the more significant the news and the greater the impact it has on market quotes. For trading, events with a three-digit degree of significance are more often used, less often with a two-digit degree. However, a series of minor news planned simultaneously or immediately after each other, can also provoke price surges on the charts. It is difficult to monitor all the indications, and it is not required. Sufficientlyset up a calendar of economic news on Forex to display only important events or to separately write out for one’s own the exit time:
- "beige books";
- Report on GDP;
- Employment’s report within the manufacturing or agricultural sector;
- CPI (consumer price index);
- Counting applications for unemployment;
- Announce interest rates of central banks;
- Report on construction;
- Stocks of crude oil;
- Consumer’s level of confidence;
- The index of industrial production, etc.
How to spell out the forecasts of the economic calendar correctly
Considering the global economic calendar, the trader should understand which data and the way to analyze in order to make a forecast of the subsequent price movement. For a detailed review of the event, just click its name. The trader should note, if there are certain expectations, then there are players who are ready to make money for them. Not in vain shortly before the release of the actual value of the news, quotes are already beginning to move in the direction of investors' expectations.
In advance, it is possible to assume price dynamics by comparing the forecasts of the economic calendar compiled by the world's leading analysts with the previous values of the indicators. But the main impacts on prices still have actual values published at the scheduled time of news release. The numbers above the expected values are indicated in green and indicate the bull market. Indicators below the expected come out "in red" and activate asset sales. The indicators, coinciding with the opinion of analysts, are indicated in black and do not have a significant impact on price fluctuations.