How to Read a Forex Economic Calendar

One of the great advantages of trading currencies is that the forex market is open 24 hours a day, five days a week (from Sunday, 5 p.m. until Friday, 4 p.m. ET). Since markets move because of news, economic data is often the most important catalyst for short-term movements. This is particularly true in the currency market, which responds not only to U.S. economic numbers, but also to news https://www.bing.com/search?q=pln&qs=n&form=QBRE&sp=-1&pq=pln&sc=8-3&sk=&cvid=63FA657300C04DFC8B7EC18443ABD393 from around the world. Here, we look at which economic numbers are released when, which data is most relevant to forex traders, and how traders can act on this market-moving information. They watch various economic calendars and trade voraciously on every release of data, viewing the 24-hours-a-day, five-days-a-week foreign exchange market as a convenient way to trade all day long.

Nowadays, in this category we can include EUR/USD, USD/CHF, GBP/USD, and USD/JPY. These are the major pairs traded by the majority https://forexbox.info/financial-modeling/ of the banks all over the world and also by all important institutions and traders, being the most followed by scalping fans.

What is Forex economic calendar?

A forex economic calendar is useful for traders to learn about upcoming news events that can shape their fundamental analysis. This piece will explore the DailyFX economic calendar in depth, offering tips on how to read a forex economic calendar to plan ahead, manage risk, and execute strategic trades.

EUR/USD Analysis: Confined in a familiar range; resilient below 1.0800 mark

With the euro being a widely used and trusted currency, it is prevalent in the forex market and adds liquidity to any currency pair it trades with. The euro is commonly traded by speculators as a play on the general health of the eurozone and its member nations. There are many official currencies that are used all over the world, but there are Review Adventure Capitalist only a handful of currencies that are traded actively in the forex market. In currency trading, only the most economically/politically stable and liquid currencies are demanded in sufficient quantities. For example, due to the size and strength of the United States economy, the American dollar is the world’s most actively traded currency.

Which economic calendar is the best?

The Best Hours for Forex Trading The week begins at 6 p.m. EST on Sunday and runs until 5 p.m. on Friday. Not all hours of the day are equally good for trading. The best time to trade is when the market is most active.

economic calendar forex

Economic indicator analysis

What is important regarding this category of currencies for scalpers is that they move slowly in the markets and that they have the biggest amounts of trading in terms of volume. This means that you can handpick the currencies and economic releases to which you pay particular attention. But, as a general rule, since the U.S. dollar is on the “other side” of 90% of all currency trades, U.S. economic releases tend to have the most pronounced impact on forex markets. It is important to take advantage of market overlaps and keep a close eye on news releases when setting up a trading schedule. Traders looking to enhance profits should aim to trade during more volatile periods while monitoring the release of new economic data.

Economic Calendar

Figure 1 lists the approximate times (Eastern Time) of the most important economic releases for each of the following countries. These are also the times that players in the forex market pay extra attention to the markets, especially when trading based on news releases. Other currency pairs also display an increase in volatility https://www.google.ru/search?newwindow=1&ei=rV7mXfyuO7GImwWQnrGQBw&q=брокер+криптовалют&oq=брокер+криптовалют&gs_l=psy-ab.3..0l2j0i22i30l8.1204.1204..1492…0.1..0.68.68.1……0….2j1..gws-wiz…….0i71.7rIrCMvqk1w&ved=0ahUKEwi8ucjRxpnmAhUxxKYKHRBPDHIQ4dUDCAo&uact=5 when the NFP releases, and traders must be aware of this as well, because they may get stopped out. The chart below shows the CAD/JPY during the NFP data release. As you can see, the increase in volatility could stop a trader out of their position even though they are not trading a currency pair linked to the US Dollar.

  • This is particularly true in the currency market, which responds not only to U.S. economic numbers, but also to news from around the world.
  • They watch various economic calendars and trade voraciously on every release of data, viewing the 24-hours-a-day, five-days-a-week foreign exchange market as a convenient way to trade all day long.
  • One of the great advantages of trading currencies is that the forex market is open 24 hours a day, five days a week (from Sunday, 5 p.m. until Friday, 4 p.m. ET).
  • Since markets move because of news, economic data is often the most important catalyst for short-term movements.

US: CB Leading Economic Index fell by 4.4% to 98.8 in April

The markets tend to price in the economic outlook future periods of time. As rule of thumb, economic growth means future prosperity which then equals to a strengthening of the country’s currency. Traders look for these upticks in economic growth (positive economic releases) as they usually https://www.google.ru/search?newwindow=1&biw=1434&bih=742&ei=ZugMXp7nHe-ArwT8nbS4AQ&q=%D1%82%D0%BE%D1%80%D0%B3%D0%BE%D0%B2%D1%8B%D0%B5+%D0%BF%D0%BB%D0%B0%D1%82%D1%84%D0%BE%D1%80%D0%BC%D1%8B&oq=%D1%82%D0%BE%D1%80%D0%B3%D0%BE%D0%B2%D1%8B%D0%B5+%D0%BF%D0%BB%D0%B0%D1%82%D1%84%D0%BE%D1%80%D0%BC%D1%8B&gs_l=psy-ab.3..0l10.50946.50946..51263…0.2..0.69.69.1……0….2j1..gws-wiz…….0i71.h2scgkrIXxo&ved=0ahUKEwiespeph-PmAhVvwIsKHfwODRcQ4dUDCAo&uact=5 offer opportunities to jump on an uptrend. In contrast, economic reports showing a slack in economic growth result in the weakening of the country’s currency. So, the future value of a currency is defined based on whether the actual data hits, misses or exceeds the forecast level.

For instance, when you hear that the U.S. dollar closed at a certain rate, it simply means that was the rate at market close in New York. That is because currency continues to be traded around the world long after New York’s close, unlike securities. So during December and the summer months a lot of bank staff take their holidays.

economic calendar forex

How do I use the forex economic calendar?

Week 14 is from Monday, March 30, 2020 until (and including) Sunday, April 5, 2020. The highest week number in a year is either 52 or 53.

BoJ Interest Rate Decision

Therefore, the Forex market tends to be slower in these months because there are fewer participants. This is typically a good time for private traders, such as us, to take our holiday!

economic calendar forex

RELATED ECONOMIC EVENTS

All trading within the forex market, whether selling, buying, or trading, will take place through currency pairs. No forex trader can afford to ignore the impact of news on foreign exchange markets. Geopolitical developments, peace or conflict situations, financial and economic data releases (like macroeconomic figures), and natural disasters all can have a significant impact on forex markets. The highly dynamic, round-the-clock forex markets require constant tracking of news developments. Here are the top U.S. sites for tracking the latest forex news.

Not only can this strategy deplete a trader’s reserves quickly, but it can burn out even the most persistent trader. In the 17 hours before the release, EUR/USD was confined within a tight 30-pip trading range. Currency https://forexbox.info/ pairs are the national currencies from two countries coupled for trading on theforeign exchange(FX) marketplace. Both currencies will have exchange rates on which the trade will have its position basis.