An economic calendar gives you some important information, mostly which are economic events that can eventually impact the volatility in the markets.
Have you ever taken a position where suddenly, due to a news release, the price jumps or falls sharply? The reasoning behind this is the news event that was responsible for it.
Without having an understanding about the events that will shape the day, it can get confusing for the trader.
There are many economic calendars that are available free of cost. However, among the many, the economic calendar at ForexFactory.com is one of the most widely used and followed by the forex trading community.
The economic calendar at ForexFactory offers you daily insights into what economic news events are scheduled. This will in-turn give you an idea of what to expect during the day. Sometimes, prices can drift in anticipation of the news release and this can lead to choppy markets for you.
If you are however aware about the upcoming economic events, you would be better informed and know the reasons behind why price is behaving in a certain way.
“ Not all news releases are important. There are three main types of economic news releases.”
the ZA Trader
Not all news releases are important. There are three main types of economic news releases.
Important: These are the most important economic news releases and they always have an impact on the markets. Some examples of such important news releases can be central bank monetary policy decisions, GDP reports, unemployment data and so on.
Medium: These medium news releases have an influence on the markets to a certain extent but not in its entirety. Such releases can be flash inflation estimates, surveys that are forward looking and so on.
Low: The low impact news releases are basically those that the markets ignore from time to time. These low impact news releases can be details such as a regional central bank giving its outlook on the economy and so on.
Besides the above three, news releases are also classified into speeches. Speeches from central bank officials are important in the context of the present day where interest rates are so low.