An economic calendar is a detailed list of economic events, including financial policy statements as well as regular weekly, monthly and quarterly economic reports and economic indicators that are expected to have an effect on trading markets. The events appear on the calendar in chronological order, and are all rated on a scale of 1-3 as to how large an impact the event is expected to have on the markets. Finally, when an economic report is scheduled, the calendar includes analysts’ predictions as to what the numbers of the report will be, and whether they will represent a rise or fall from the previous report. The economic calendar can help traders predict if the markets will be bullish or bearish, active or quiet, and by doing so, enable traders to develop strong strategies based on the scheduled events and the fundamental analysis made possible by the calendar. Click here to visit the economic calendar on Fortrade.com.
By watching the economic calendar and having an idea what to expect from various economic reports and policy statements, traders have a very powerful tool for fundamental analysis. Of course, as with every aspect of forex trading, nothing is foolproof. Analyst predictions may be wrong, or the reaction of the markets to the events in the economic calendar may be other than anticipated, due to unforeseen, external circumstances. That being said, the economic calendar remains a very effective tool at a trader’s command, and it should be checked daily and followed closely.