The forex market, the biggest financial market worldwide, is characterised by sudden market fluctuations and trades that are time-sensitive. To sidestep losses, traders must be alert and keep a close eye on global events. An economic calendar is essential in this regard, as it helps traders make informed decisions.
The economic calendar is used by traders and investors to monitor market-moving events and plan their trading.
An economic calendar includes all the scheduled releases of economic data and financial events for a given country that may affect the movement of currencies’ prices and markets.
It is a useful tool for investors and traders, who follow economic updates in order to plan their trades, organise their portfolios and better understand how such market movements could in turn affect chart patterns.
One example of key indicators that is usually closely watched by investors is the Purchasing Managers’ Index (PMI) data by IHS Markit which offers accurate insight into global economic health.
Another crucial event is the interest rate decisions of central banks such as the US Federal Reserve.
Both indicators are significant market releases that usually result in market volatility, particularly when the released figures fall above or below market expectations.
Traders and investors rely on the economic calendar to give them the necessary information and to spot trading opportunities. Therefore, they can organise and time their trades around the release of economic data or events that are expected to have a major impact on the markets.
