An Economic Calendar is simply a list of important events that are about to happen in the upcoming days, weeks, months, or even years. These events are not just any big events in the world but are specifically related to the economy and financial data. It consists of news, reports, conferences, data releases, and other pieces of information that hold enough significance to impact the price movements in the forex market. With so many variables acting together to move the market, an Economic Calendar provides an opportunity to have some form of control to the forex traders so that they can be better prepared for the price fluctuations in the market due to those publications. For every forex trader, this acts as strong support to plan and strategize their trades in advance so that they can make the best possible decisions regarding their trades when the event happens.
The Economic Calendar is very easily available at various financial websites and on forex broker’s platforms for free so that is a plus point. However, it should be noted that every platform might add the events in the Economic Calendar based on their target customers and viewers, which means not all economic events will be mentioned, only those will be updated that are related and important for their specific audience’s trading needs. An Economic Calendar could be customized according to a trader’s requirements so that they only receive updates that are important for their currency pairs and trading methods.
The upcoming events or reports that could be added in an Economic Calendar include employment rates, inflation rates, interest rates, new home starts, reports from Federal Reserves or other National and Central Banks, and economic surveys along with other similar types of information. They could be dates of events that will take place in the future or reports on recent financial news, both can significantly impact the prices in the forex market. Every currency can have its own Economic Calendar based on its country’s economic events and news, which can affect its prices, however, the price change happens in relation to other currencies, and in a currency pair both currencies’ data can be the cause of change.