The forex market, the largest global financial market, is characterised by rapid market movements and time-sensitive trades. To avoid potential losses, traders need to keep a close watch on global events. An economic calendar serves as a crucial tool that enables traders to make well-informed decisions.
The economic calendar enables traders to monitor significant market-moving events and plan their trading. It includes all the scheduled releases of economic data and financial events specific to a particular country. These events have the potential to influence currency price movements and overall market conditions.
This tool is useful for both investors and traders, allowing them to stay informed about economic updates to plan their trades, manage their portfolios and gain a better understanding of how market movements could impact affect chart patterns.
A key indicator that is usually closely watched by investors is the Purchasing Managers’ Index (PMI) data by IHS Markit. This data offers precise insights into global economic health.
Another important event is the interest rate decisions of central banks, such as the US Federal Reserve.
Both indicators are significant market releases, often leading to market volatility, especially when the reported figures deviate significantly from market expectations.
Traders and investors rely on the economic calendar to provide vital information and to help them identify trading opportunities. In this way, they can plan and time their trades around the release of economic data or events which are expected to have a major influence on financial markets.
