Every professional trader should track the latest economic events and the Forex Economic Calendar. Because the most important news can cause heavy price fluctuations and volatility. The key to successful trading is to be prepared and the Forex Economic Calendar will help you to have a better overview of what is happening in the market and to make the best trade decisions.
Forex economic calendar is one of the finest trading tools that allows traders to acquire proper understanding about the upcoming market-moving global events. The calendar comprises of a release schedule for various economic indicators, where traders can anticipate when a major movement will occur in the market.
The most influential dates on this calendar includes report on Gross Domestic Product (GDP), decisions on interest rates, non-farm payrolls, Purchasing Manager Index (PMI) and Consumer Price Index (CPI). The calendar even represent past reports along with its impact on the global economies. For higher precision, the economic calendar keeps a track of the events and announcements with exact date, time and the various currencies that will be involved in it.
What Are The Indicators of Forex Economic Calendar?
Evaluation of a economy's political and social dynamics based on the demand of currency leads to noticeable changes in the supporting sector. And these changes are regarded as the indicators of the forex economic calendar.
Growth The growth of an economy is measured in terms of its GDP. This offers a concise summary about how well the various components are performing and whether they are present at their expected conditions or not. Because when an economy flourishes then a rise in the value of its currency is seen, whereas if it is unable to achieve the desired goals then a negative deviation is witnessed in the price of currency.
Inflation Inflation is defined as an increase in the prices of services and goods. The central banks take measures to influence it, as this can affect local currencies. This means, during the period of high inflation enterprises have to pay less capital to their lenders while consumers end up spending more to purchase the same services or goods. Similarly, low inflation rates can limit wages along with investment outlook and make the stagnant the overall growth.
Personal Consumption Expenditure: PCE considers reaction of the consumer to the earlier price change and integrates the index for comparing the present situation.
Consumer Price Index: This is the measure of average value of the prevailing services or goods. The CPI reports are prepared once in every month.
Inflation Rate: The inflation rate is calculated every month and then compared with the rate of the inflation of the same month in the preceding year.
Business Businesses are the pillar of investment and thus they play a vital role in the decisions of forex traders and activities of central banks.
Industrial Production: It measures the overall production of manufacturing and industrial sector. They represent real figures and thus influence the business sentiments creating a strong impact on the economy.
Purchasing Managers Index: These are the surveys of purchasing managers from various industries. Common aspects of this index are employment, new orders, supplier deliveries, production and future industry expansion.
Retail Sales: The total number of goods that have been bought by the consumers. It focuses on the reports of commodities or industries that contribute the most towards GDP.
Consumer Confidence: Consumers are not going to spend until and unless they have a secured job with wages and if they have to struggle for their job then this deteriorates the economy.
To obtain additional information (together with history data) about each event in the forex economic calendar above - simply click at the row of the selected event. To disappear detailed information, click at the same row again.
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