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What to look for in an economic calendar?

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One of the tools that is essential to the success of trading Forex is the calendar of economics. Utilizing the calendar, the trader can gain an understanding of the reasons why the market moves in a certain direction as well as, simultaneously they will be capable of anticipating these movements. Overall the most important market-moving events are the release of crucial economic figures like the GDP and US non-farm payroll figures. Although not all reactions of the markets to these announcements are predictable, but they are a great source of trading opportunities.

What should you look for in the economic calendar?

The most experienced traders study the future events in the economy regularly in order to anticipate the direction of a specific currency pair. They are usually ahead of announcements for important events and take actions in a particular manner, so that when the announcements are announced, they have already calculated the worth for the particular currency pair that they’re looking at. One simple, yet efficient method to ensure traders are aware of any information from announcements, news, or statements is to keep a ปฏิทิน เศรษฐกิจ forex available. With this essential trading instrument, traders are able to monitor the most important economic indicators and non-economic indicators that can provide clues to what direction the market is heading. They will be aware of all happenings that are likely to affect the direction of a specific currency.

There are a variety of methods to maintain the calendar of economics. The most popular is to use an online system for managing calendars that updates information on a regular basis and instantly present all details to users.

In looking through such the calendar, an aspiring trader will be able to see that the data is organized in several columns arranged by country, the indication of the indicator’s name and its influence (or significance) of the indicator, along with values for the current period as well as forecast value and values for a prior period.

It is important to note that various countries have different influence in the world’s markets. For instance, since over the last decade, nearly two-thirds of the total reserve of foreign exchange reserves allocated to nations around the world have been accounted for using US dollars, which is recognized as having the status of a reserve currency. Because it is the case that the United States accounts for a significant portion of the worldwide currency transactions, significant economic events and reports directly from US-based entities U.S. usually cause the greatest impact on the market for currency and, in some cases, even on currency pairsthat don’t include the US dollar.

Different types of indicators

There are two kinds of indicators that take into account the time aspect that every trader should know about: Leading indicators that tend to change prior to significant economic adjustments and, therefore are able to be used to anticipate future trends. indicators that reflect the economic performance over time and modifications to these indicators are only apparent when a trend or pattern has been established.

A prime indicator is the Retail Sales. other indicators that are lagging include the unemployment rate.

In addition, indicators are typically divided into three categories based on their impact on the economy and, in turn, the their potential for volatility. Every economic calendar platform has its own approach to evaluate their economic indicators. has designed its own calendar of economic indicators by rating these indicators based on the their potential volatility on the markets.

The most important indicator is a nation’s GDP (Gross Domestic Product) which measures the worth of all products and services that are produced in a specific country. PMI (Purchasing Manager’s Index) examines the manufacturing process and is also considered to be an indicator of higher impact. Other indicators that are closely monitored include Initial Jobless Claims, Unemployment rate, Consumer Confidence Index, Sales at home, Durable Goods Orders, and many more. We will discuss all of them in the next section of our guide.

A lesser-known, but nevertheless important data is provided by indicators like housing beginnings and those from the Beige Book report, Business Inventories and Factory Orders. Average Hourly Earnings, the Federal Budget Balance and so on.

Two other indicators that are highly anticipated to use for Forex Market analysis include the Producer Price Index (PPI) and the Consumer Price Index (CPI) that reflect the price averages for consumers and producers of both goods and services. These are considered to be the most reliable measure of the inflation rate within a nation.

How do you deal with information?

Market participants typically compare current data with figures from the previous period as well as taking into account analyst estimates of the information. By putting these three data points together, traders are aware that new data either disappoints or exceeds expectations. This will determine the next course of action on the market.

Political announcements and economic announcements could also trigger a change on the course of a certain currency pair, in some cases in just a few seconds. With the help of the calendar for economics the trader can detect a possible change more quickly and react faster than other traders on the market.

When a trader realizes that the release date of the report in question is coming up The first consideration should be to determine if the report could trigger volatility, and if so, whether the volatility will be high. The way a trader reacts to an announcement depends greatly on where the trader is positioned and the location of his/her the protective stops. This is the reason why leading indicators can be so vital to one’s choice. The traders can profit from having data beforehand, as it lets them predict the likely course of the currency pair that they would like to invest in.

As you become more knowledgeable of Forex trading fundamentals, you’ll be able to move further and be able to comprehend in depth every one of the important economic indicators released every trading day. This guide will walk you through every closely-watched economic indicator of analysts, describing the relationship between it and the entire picture.