The Economic Calendar

The economic calendar refers to the schedules dates of significant releases or events that may affect movement of individual security prices or markets as a whole. Investors and traders use the economic calendar to plan trades and portfolio reallocations, as well as to be alert to chart patterns and indicators that may be caused or affected by these events. The economic calendar for various countries is available for free on multiple financial and market websites. An economic calendar shows the scheduled news events or data releases related to the economy and financial markets. New GDP growth rate figures, the latest non-farm payroll numbers, and interest rate decisions—these are all examples of what you may find on an economic calendar. An economic calendar is used by investors to monitor market-moving events, such as economic indicators and monetary policy decisions. Market-moving events, which are typically announced or released in a report, have a high probability of impacting the financial markets.

These events are listed on the crypto trading volume, along with the scheduled time of the release. Investors should also note that large, economically powerful countries usually have the biggest impact on the markets. In this case, an economic indicator released by a smaller country may not have the same impact as one released by a bigger country. For example, the consumer price index of Greece is unlikely to impact the markets, and some calendars will have it listed as a level one event. By contrast, consumer price index data from the United States or Eurozone will have the biggest impact on the markets. Countries and economic regions that tend to impact the markets the most are the United States, Eurozone, Japan and the United Kingdom.

What Is The Economic Calendar?

A trader may, for example, create an dollar cost averaging around the major releases from oil producing regions while also incorporating the U.S. Energy Information Administration weekly petroleum status report and the quarterly filing dates of the oil sector companies he follows. In this way, an economic calendar becomes a customizable trading tool like an indicator alert. Economic calendars are available for free from financial and economic websites. For example, the economic calendar on many websites lists only events in the United States as these events have a large market impact. There are other sites that allow the user to build their own economic calendar by using filters to display or hide events. Traders and investors rely on the economic calendar to give them information and to provide trading opportunities.

Monetary Policy

Quickly analyze previous data sets against market consensus, and check volatility for potential trade ideas. If you day trade options, you can hold your positions through a major data release. Many options strategies are designed for trading these types of specific events. Once you buy an option your risk is capped—the premium you paid is the potential loss.

This tool will be helpful to be prepared for changes in the market affected by the following events. Please ensure you understand all risks and seek independent advice if necessary. Tools for analysing the markets and defining your trading strategy are present within the analysis section of economic calendar our ADSS site. This features everything from useful economic and earnings calendars to help plan your trades in advance, to market briefings. Browse the markets and discover how to trade on each one, find out more details about our trading platforms and apps, and how to open an account.

An economic calendar is usually displayed as a chart showing the days, weeks and months of a particular year. Each day lists several market-moving events in chronological order, giving investors time to research and anticipate the specific release of interest to them. Track current U.S. economic data including major markets news, analysis, and events such as earnings announcements and key economic indicators. While these free calendars can be a useful starting point, most traders customize a calendar of their own based on the types of trades they prefer and the asset classes and regions they are comfortable with. Moreover, a customized economic calendar doesn’t need to be limited to government and central bank releases.

Along with upcoming economic events and the speculation of any releases, the calendar also considers press conferences or speeches that Central Bank members are holding. Central Banks are at the forefront for the regulation of inflation and general price stability. Thus, all of these factors directly influence the market and suggest how a trader can move. Stay on top of the markets by viewing upcoming economic events to help you make informed trading decisions, with our Economic Calendar.

• When you buy an option or close out the trade, you may get slippage, but you can’t lose more than the premium you paid.
• Many options strategies are designed for trading these types of specific events.
• Each event is graded, and those grades depend on which economic calendar website you use.
• Once you buy an option your risk is capped—the premium you paid is the potential loss.
• Events that may have a market impact are marked as “Medium,” and they usually have a yellow dot or yellow star beside the event.

The Australian economy is particularly rich in commodities, with the Down Under country mainly sourcing its resources to China and other Asian countries.

A volatility level refers to the likelihood that a specific event will impact the markets. If an event has a level one volatility, it is not expected to significantly affect the markets. An event with a volatility level of two is expected to impact the markets moderately, depending on other factors (e.g. other market-moving events, political factors, news items, etc.).

Commonly this is shown as colours; with red assigned to the most important, and orange, then yellow to signify less consequential events. For example, should you be trading a currency pair and have a bullish EURUSD technical analysis setup, then a fundamental reason for the pair to move on the upside is imperative.

Usually this feature tool is organised into user-friendly categories and columns, and conveniently arranged according to the forex trading scheduled release of the next key event. All calendars will feature a key for signifying the importance of each event.