How to read forex news calendar

For all traders, it is extremely important to understand the major events that will happen on the economic calendar in the coming week. We provide you with an exclusive customized economic calendar, real-time updates, and important announcements from all major world regions.

Check out the economic calendar below to keep an eye on the impact of foreign exchange, index and commodity markets in real-time on the major financial events and news.

Forex traders need to understand the upcoming low, medium, and high impact events in order to open positions and set stop losses.

A major function of our economic calendar is the ability to horizontally compare the actual results, market forecasts, and previous values ​​of all data. This allows you to quickly understand whether the actual result is above or below the estimate. When the actual result is very different from the prediction of the big market, the market usually responds accordingly.

What is the Forex Economic Calendar, and how does it work?

The foreign exchange and stock market economic calendar is an important economic event and important announcement during the trading hours. This basic data affects prices in small and large markets. This is why the economic news calendar can be one of the first-tier tools for real-time analysis if you decide to delve into foreign exchange.

How to use the economic calendar?

  • In addition to being an integral part of fundamental analysis and forecasting, as mentioned above, the real-time foreign exchange economic calendar is also a reliable source of information when opening new positions.
  • There is a good algorithm to use the Forex calendar, which is applicable to all investors.
  • At the beginning of a new trading day (or the day before), traders open the economic calendar and record relevant macroeconomic news. The most important is the news segment marked with three exclamation marks.
  • If traders have enough experience, they will analyze previous macroeconomic data, as well as the reaction of major market participants and how it affects the dynamics of asset quotes. It is also important to understand the opinions of market experts and more experienced traders and to obtain general market commentary and advice from independent experts such as FXOpen.
  • After the press release and its evaluation, traders immediately coordinate the released data with forecasts and decide to invest funds based on the conclusions made. Please note that you need to carefully consider your investment goals in each situation.
  • If the news is positive, that is, its actual value is higher than the predicted median, you can consider buying currency with the most sensitive quotation for the content of macroeconomic news.
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If the news is negative, that is, its value is lower than predicted, consider selling this currency.

However, news trading is not the only way to use the economic calendar. In many cases, various news can affect the world economy. Changes in the discount rate made by the central bank (regulatory agency), or release of inflation statistics, the number of employees, and other events. , Can guide foreign exchange, stock, and commodity market quotations to long-term trends. This kind of performance occurs directly or indirectly and falls into the interests of investors, who can use the economic calendar to make long-term forecasts and investments.

  • What should I pay attention to when using the foreign exchange economic calendar?
  • When you browse the economic calendar, the following data may be critical:
  • Release time (adjust according to your time zone).
  • News source (country and publication source). For example, if you trade USD/CAD, you should pay attention to the economic statistics of Canada and the United States.
  • The weight of the news, that is, the impact on related assets. If the impact is low, the price of the relevant currency is likely to be unaffected, and high-profile news may lead to high volatility of financial assets.
  • The nature and wording of the news will make it possible to judge the nature of this event, whether it is Mario Draghi’s speech or the U.S. unemployment statistics.
  • Results and forecast statistics: Historical data will allow you to assess the evolution of events and compare them with current market conditions, and may even take a different view on the initial investment.
  • Please note that reliance on this information should be limited, not your only source of decision-making. Foreign exchange transactions are always associated with certain risks, no matter what analytical method you use. If you decide to trade in the context of specific news, always keep in mind the amount of loss you can afford, and remember that the foreign exchange economic calendar does not constitute investment advice.

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