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The Impact Of Economic Calendar Events On Profit Potential – This economic calendar, powered by a trusted third party, shows the biggest financial news and events happening around the world in real time. Easy to use with filters to zoom in on the markets you care about most, this is a popular tool for fundamental analysts – as well as those who like to mix and match both fundamental and technical trading techniques. Not sure how to use it? No worries. We are here to guide you through.
The economic calendar is automatically updated every time new data is released. It shows each event in chronological order and lists both the time and date each event is due to occur.
The Impact Of Economic Calendar Events On Profit Potential
You can filter dates by day, week or month to see exactly what’s happening and when. With the time frame you choose, you can also customize to view the latest on the countries or economic events you want to follow.
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You can use the keyword search bar to focus on specific events that you think may affect the markets you are trading.
Once you click on the event that interests you, you can access more information as well as a price chart that shows historical data to help you decide if and how to act.
Invest in currencies? Look for the flag icon that represents the matrix of the relevant data release, so you can track the currencies that may be affected with a quick scroll.
Daily Market Analysis Market news and insights from our team of experts to help you make those important business decisions.
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Economic Calendar is a tool that helps you track key economic indicators, news and alerts as they happen. It is automatically updated whenever new information is released and is a popular way for both fundamental and technical traders to track the markets they are investing in.
No matter what markets you’re trading, it’s always important to be prepared for events that could affect them. Not only can this help you spot new opportunities, but it also allows you to prepare and protect any existing positions should the markets take a turn for the worse.
The economic calendar shows each event in chronological order, as well as the time and date each event is due to occur. You can filter dates by day, week or month to see exactly what’s happening and when.
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Economic events are those that affect the strength of a currency, country, industry or company. This can include employment data such as US non-farm payrolls, earnings periods (where most quarterly corporate earnings are released to the public) and Federal Reserve meetings. within a relatively short time. However, just as not all fingers are the same, not all macroeconomic news events have similar effects on the market. For example, the German Flash Manufacturing PMI will always have a greater impact on the Euro compared to the French Flash Manufacturing PMI. If you have opened an economic calendar, you can already see which news has a greater impact on the market and others that you can easily ignore. For example, if you are trading the Australian dollar, you can easily ignore the leading index of the Conference Board on a monthly basis, as it will hardly move the price of AUD/USD or AUD/CAD, and even if it does, movement will probably not change the prevailing trend. Compared to low-impact news such as the CB Leading Index, Australia’s unemployment rate or the overnight rate set by the Reserve Bank of Australia (RBA) will have serious implications for the AUD/USD exchange rate or any currency pair linked to the Australian dollar. So, out of hundreds of news releases, how do you know which news events to follow? The good news is, just like the Pareto principle, only a few news releases are responsible for most of the price movement for most currency pairs. Some of these news events are common to almost every currency and if you can just understand how this affects your favorite currency pair, you will be way ahead as a trader than most newbies who are only looking at a chart. #1: Unemployment One of the main responsibilities of central banks around the world is to maintain low unemployment. All of the major monetary policy decisions made by the central bank are to keep it close to the inflation rate that does not accelerate unemployment, the NAIRU. All major economies release unemployment statistics on a monthly basis and the lower they go; the better the currency’s valuation will be. Partly because when the unemployment rate falls below the NAIRU, which is always close to 4.0%, central banks start raising interest rates to reduce inflation and cool the economy. This expectation of higher inflation and higher interest rates is highly correlated with low unemployment. Therefore, the unemployment rate acts as a leading indicator of future monetary policy decisions. Figure 1: Unemployment in the UK and the European Union Currently unemployment in the EU is much higher than in the UK. Therefore, a simple analysis would suggest that the Euro’s valuation is higher than the British Pound (EUR/GBP). If you see a consensus forecast saying that unemployment in the European Union would fall next month, but it would remain unchanged in the UK, you can see that as bullish news for EUR/GBP. #2: Gross Domestic Product (GDP) Growth Rate Gross Domestic Product (GDP) is like a scorecard for a game. It measures the overall health of an economy and the higher the economic growth, the stronger the currency would be. If you are trading GBP/USD, just by watching the US and UK economic growth, you can easily figure out which way the pair would go in the coming weeks. Figure 2: The GDP growth rate of the United States and the United Kingdom In Figure 2, you can see that the economic growth rate of the United States is generally close to that of the United Kingdom. However, people often outdo each other. When you see that US economic growth is above the UK growth rate, you can interpret it as a bearish signal for GBP/USD. Similarly, if you see a forecast where New Zealand’s growth rate falls relative to the UK, that would be a bullish sign for GBP/NZD. Figure 3: GDP data release leads to sudden price increase #3: Consumer Price Index (CPI) The Consumer Price Index (CPI) measures inflation in the economy relative to a base year. You don’t need to be an economist to understand how inflation affects a particular currency pair, but some basic understanding would help you go further. You see, most central banks have a monetary policy that tries to limit inflation to a certain pre-defined range. When inflation exceeds this level, central banks usually raise interest rates to curb inflation. Most central banks try to limit inflation to 2.0% and use the consumer price index to measure it. However, the Federal Reserve, the central bank of the United States, uses the consumer spending index instead of the consumer price index. So, if you’re trading the US dollar and want to predict the future interest rate landscape, use the PCE index. Nevertheless, any time you see a forecast of a rising CPI, that would be bullish news for the currency. For example, if the UK CPI forecast is 2.5% for the quarter and Australia’s CPI remains at 1.5%, then this will have a bullish effect on GBP/AUD. #4: Overnight Interest You see, banks also lend money from each other, but they do it overnight. Central banks try to influence overnight interest rates by lending in the money market at their own overnight interest rates, and this is an important tool in their monetary arsenal. Daily interest rates are the main reason why prices fluctuate in the market, as they also affect exchange rates. In fact, many traders think that the main purpose of fundamental analysis is to predict the future rates of major central banks. While understanding monetary policy is difficult, even for seasoned economists, the way to interpret this news is fairly easy. If you see a forecast that says the Federal Reserve is likely to raise overnight rates, that will likely have a bullish effect on the US dollar. So, for example, if the Bank of Japan keeps its rate unchanged, that will be bullish news for USD/JPY. #5: US Nonfarm Payrolls (NFP) Data The nonfarm payrolls measure the number of additional jobs added from the previous month in
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