CandleFocus Glossary Editor
An economic calendar is a valuable tool for traders and investors that are looking to stay ahead of the market and track any changes that may impact their investments. It lists scheduled events, releases and data from both global institutions such as the World Bank or International Monetary Fund, and from individual countries such as the United States’ Department of Labor or Bureau of Labor Statistics. These events are likely to affect stock markets, commodity prices or currencies, making an economic calendar essential for those looking to make informed decisions. Even the U.S. Federal Reserve Bank uses the Economic Calendar to plan the timing of their decisions.
Every event listed on the economic calendar ranges in having more or less of an impact on the markets. A scheduled news event may cause a one-time, but significant market movement while a less-significant event may cause more incremental movement over a longer period of time. From a trader's point of view, they should be aware of any potential impact that a scheduled event may have on their existing positions and be willing to adapt their strategies as needed.
Events can most often be found listed by the date the information is expected to be released or the news event is scheduled to take place. Depending on the country, releases or events may occur monthly, quarterly or once a year. Generally, when an event has been highly anticipated, it is known as an “event risk” and could cause large swings in the markets. For example, the release of a jobs report in the U.S. will cause a big move in the U.S. Dollar, bond markets and stock markets.
To keep track of all such events, traders and investors utilize an economic calendar to find out relevant information that may affect their financial interests. Many of the news sources and trading platforms provide users with an economic calendar that can be filtered and sorted to the individual's preferences. These calendars may keep users informed of indicators such as the Consumer Price Index, Purchasing Managers Indices, and output data. This way traders can keep an eye out for smaller changes in an economy's data.
The economic calendar is an invaluable tool that can help any trader to gain insight into the state of the markets, make informed choices, and measure their risk. By tracking upcoming news events and monitoring the markets for potential movement, traders can stay ahead of the curve and adjust their portfolios accordingly.
Every event listed on the economic calendar ranges in having more or less of an impact on the markets. A scheduled news event may cause a one-time, but significant market movement while a less-significant event may cause more incremental movement over a longer period of time. From a trader's point of view, they should be aware of any potential impact that a scheduled event may have on their existing positions and be willing to adapt their strategies as needed.
Events can most often be found listed by the date the information is expected to be released or the news event is scheduled to take place. Depending on the country, releases or events may occur monthly, quarterly or once a year. Generally, when an event has been highly anticipated, it is known as an “event risk” and could cause large swings in the markets. For example, the release of a jobs report in the U.S. will cause a big move in the U.S. Dollar, bond markets and stock markets.
To keep track of all such events, traders and investors utilize an economic calendar to find out relevant information that may affect their financial interests. Many of the news sources and trading platforms provide users with an economic calendar that can be filtered and sorted to the individual's preferences. These calendars may keep users informed of indicators such as the Consumer Price Index, Purchasing Managers Indices, and output data. This way traders can keep an eye out for smaller changes in an economy's data.
The economic calendar is an invaluable tool that can help any trader to gain insight into the state of the markets, make informed choices, and measure their risk. By tracking upcoming news events and monitoring the markets for potential movement, traders can stay ahead of the curve and adjust their portfolios accordingly.