Using our Forex Economic Calendar helps traders stay informed of important economic events that may affect market volatility.

 

Governments and other organizations continually measure and report on economic growth data, making a reliable calendar a vital tool. Such news can cause currency pairs like EUR/USD to gap 50 pips after key employment data like US Non-farm payrolls are released.

 

During high volatility events, traders should be aware of the risk involved in having open trades. Analysts form a consensus estimate prior to the release of economic data; if it differs significantly from the actual result, high volatility can take place quickly.

 

At the start of each trading week, check the calendar for upcoming high (red icon) or medium (orange icon) impact events.

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The "Impact" value on an economic calendar indicates the potential for the associated report to move the market. If the data released is substantially different from expectations, it can cause volatility. Conversely, if the data meets expectations, there will likely be little to no market reaction.

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Traders often look at economic calendars for two reasons. The first is to plan their trades around periods of high volatility. The second is to capitalize on such periods by entering and exiting trades profitably.

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Most economic calendars display the following values: 

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Previous Month Value - The results of the previous month, which may change due to revisions. Unexpected revisions can cause volatility.

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Forecast or Consensus Value - Predictions based on a consensus of analysts.

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Actual Value - The actual report value, with large discrepancies compared to forecasts causing market reactions. 

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Impact - Denoted by a coloured icon next to the event name; red means high impact and orange means medium impact.