An economic calendar can be utilised to improve the performance of your trades in a variety of ways.
Keeping up with the markets
Regardless of whether you are trading forex or stocks, you can use the calendar to track the financial markets and better understand political and economic news and how these can affect a wide range of markets.
Keeping abreast of the news
For news releases and economic developments, an economic calendar is an excellent resource. Use it to strategically plan your forex trading.
Fundamental analysis
Economic calendars contain a lot of the data needed for fundamental analysis. Trading Forex through fundamental analysis means that you have to check closely the state of world economies whose currencies you are trading most often. To see how these economies are faring, you will need to be aware of macroeconomic data (such as GDP, consumption data, inflation, etc.).
The global economic health of countries
An economic calendar can assist a trader in learning more about economic indicators that are used to study how a country is performing. IHS Markit’s Purchasing Managers’ Index (PMI) data, for example, provides critical insight into global economic health. Other sorts of data examined include GDP figures, interest rates, employment rates, and so on.
Historical information
Some economic calendars provide access to previous market data that can be compared to current data. Traders and investors can speculate on trends and forecast market moves in this manner.
Creating a Trading Strategy
Economic calendars can be used by traders to develop trading strategies. An economic calendar will provide fundamental data that is essential to know when you open or close trades.
Some economic calendars also allow you customisation, so you can see what you want and when you want it. Others allow you to set up trading alerts so that you are always informed of breaking news and key events.
