Economic Calendar for Forex Trading
Doo Prime’s Economic Calendar is an easy way to keep track of important economic events that could impact your trading. Quickly analyze previous data sets against market consensus, and check volatility for potential trade ideas. You can also search for the economic events most important to you.
What Is An Economic Calendar and The Importance of It
The key to the success for most traders is a frequently updated economic calendar. The calendar covers all important events and releases that affect the markets as well as the economy of a specific country. A great understanding of why markets do what they do, can be found on these calendars while traders are able to anticipate market moves based on previous, actual and forecast numbers. With the release of key economic data such as NFP, GDP, etc figures present excellent trading opportunities.
What are Economic Indicators?
There are a number of economic indicators that offer statistical information about a countries economic activity. Used mostly as a ‘pre-view’ of sorts to establish performance, patterns and prediction on future performance within an economy, such as a business cycle. The article will take a look at the various types of economic indicators, the importance of their use during trading as well as where to find the relevant indicators per country.
Economic indicators are scheduled economic data releases, declarations and announcements by leading factors in the financial arena. There are many indicators, and each of them differs from the other in their place of origin, target audience and effect on the various financial markets.
Types of Economic Indicators
The indicators’ frequencies vary from one indicator to the other; some are daily, others monthly and several are quarterly. Before the indicator occurs there are speculations made by leading financial figures, and traders base their moves on those speculations. An economic event has a double influence; first when announced, and second when compared to the speculations made before. A big difference between the speculation and the actual number can cause shifts in the market.
Examples of economic indicators include:
- Unemployment rate
- Interest rates
- New building permits
- Federal funds rate
- Changes in the Gross Domestic Product (GDP)
- Income/Wages
- Consumer Price Index (Inflation)
- Currency Strength
- Corporate Profits
- Balance of Trade
Each indicator can affect more than its own market. For instance, if a government issued a statement that more building permits were given, it will result with more jobs, lowering the unemployed rate and thus leading to higher consumption rate and ending with the strengthening of the local currency.
