Economic calendar - a tool for making decisions when trading in the market

Stable profitable trading on the currency market is always a result of hard work and cold calculation, but not chance and luck. In order to become a successful trader, a beginner should equip himself with knowledge of market mechanisms, develop appropriate qualities, acquire skills of using various trading tools and strategies. Economic calendar - one of these tools, allowing you to keep abreast of important stock market events and make the right decision in a timely manner.

Influence of economic events on the dynamics of the currency

The dynamics of currency pairs depend on many factors, some of which cannot be predicted or forecasted. The island of stability in this ocean of uncertainty is  trading calendar.

The dynamics of the national currency is a direct consequence of the economic situation in the state. The more stable and successful is the economy, the stronger is the national currency. Published economic statistics allows the market to assess the state of the economy and its prospects, which is reflected in the dynamics of currency pairs.

Most fundamental events - central bank interest rate decisions, important economic reports, etc. - are published according to a strictly defined schedule. They can have a significant impact on the dynamics of currency pairs, sometimes giving rise to a new medium-term trend. The successful trader should always remember about such economic events, adjusting his trading tactics according to the calendar of economic news. To say more - it is impossible to create a successful trading plan without taking macroeconomic statistics into consideration.

Forex calendar of exchange events: everything is easier than it seems

Using the economic calendar when trading in the foreign exchange market is much easier than it seems at first glance. We look at the importance of the published indicator and its forecasted value. If the actual figure is better than the forecasted one, it almost always acts as a driver for growth of the national currency and vice versa. The greater the difference between the actual value and the forecasted one, the greater the volatility of the corresponding currency pair.

An important point when using the event calendar is the entry and exit of the market. At the release of important exchange news, such as the NonFarm Payrolls report or the press conference of the ECB head, in the corresponding currency pairs the level of volatility can dramatically increase several times, in just a few minutes the pair can fall or rise sometimes by several hundred points. For a deposit of small size such changes can be critical, so some traders prefer to stay out of the market on the eve of important exchange events.

Of course, in the use of the exchange Forex trader's calendar  There are a lot more nuances than described in this article: the degree of importance of economic statistics is quite conditional, not always the currency pair reacts to improvement of the actual indicator by growth and so on. There is no sense to describe all the details because each currency has its own set of the most important economic data which it reacts to. Every trader determines it for himself in a practical way. It is important to remember that trading on the market without using an economic calendar is simply impossible.