The economic calendar is a representation of upcoming and past events relating to specific economies that would directly or indirectly affect respective Forex pairs. It becomes an important part of analysis as major moves take place near and after to economic release. Hence, a trader must be aware of the same. Some of the advanced calendars online also offer historical data-points relating to the release and will help you to get a better view of the actual outcome. However, it becomes important to first understand the basics of headline economics in order to trade the data in a better way.

When Are News Releases Issued?

We have taken the EST time zone as the standard, at which the most important economic releases for each of the following countries are published. These are also the times at which you should pay close attention to the markets if you plan on trading news releases.

What Are the Key Releases?

When trading news, you first must know which releases are actually expected that week. Second, it is key for you to know which data is important. These are the most important economic releases for any country:

1

Interest rate decision

2

Retail sales

3

Inflation (consumer price or producer price)

4

Unemployment

5

Industrial production

6

Business sentiment surveys

7

Consumer confidence surveys

8

Trade balance

9

Manufacturing sector surveys

How to Trade Forex on the Economic News?

To trade on the news, you should get access to the global economic calendar that is usually published in the Forex market a week before the opening of the market. You can find on Forex4you the economic calendar, which is a free feature to help your Forex trading. This calendar gives detailed information on the various economic news and government policy briefings that will be periodically released over the course of the Forex trading year and is adjusted based on the prevailing economic conditions.

The correct usage of this news depends on the interpretation of the following events:

  • The actual event

  • The consensus

  • The previous meaning

If the data that finally comes in support of the investor sentiment, then there will be a very small change in the trends. If the data is different from the prediction, then the reaction will be equally drastic. The online trading market will show a spike corresponding to the difference in the news. Whenever the news is better than the prediction, a buy is recommended. This goes for the opposite scenario, while the news fails to meet the predictions, a sell is recommended.

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