An economic calendar can be used to enhance the performance of your trades in different ways.
Keeping up with the markets
Whether you participate in forex or stock trading, the calendar serves as a tool to monitor the financial markets. It helps to better understand the impact of political and economic news on a wide range of markets.
Keeping abreast of the news
The economic calendar is a valuable resource for staying updated on news releases and economic developments. Traders can use it to plan their forex trading strategies.
Fundamental analysis
Economic calendars include essential data needed for fundamental analysis. Trading forex via fundamental analysis requires a close check of the global economies whose currencies are traded most frequently. To evaluate the health of these economies, macroeconomic data, such as GDP, consumption data, inflation, is crucial.
Global economic health
An economic calendar can serve as a valuable resource for traders to learn more about the economic indicators that are used to assess a country’s performance. For instance, IHS Markit’s Purchasing Managers’ Index (PMI) data offers vital insights into global economic health. Other data includes GDP figures, interest rates, employment rates, and more.
Historical information
Some economic calendars offer access to past market data that can be compared to current data. This enables traders and investors to identify trends and make market predictions.
Creating a trading strategy
Traders use economic calendars to develop trading strategies. An economic calendar will provide fundamental data to help traders make informed decisions about when to open or close trades.
Some economic calendars also allow customisation options to allow users to view specific information according to their preferences. Others provide trading alerts to ensure that traders are always informed of breaking news and key events.
