Before we go any further, let’s break down the different sections of the forex factory economic calendar. When you combine the information from the economic event based on the forex economic calendar, you can get a better view of the markets. Economic events are the cornerstones for news trading. This is a strategy dotbig testimonials where traders trade only around news releases. New releases create a lot of volatility and you can make quite some profits. For example, you might have come across times when some good economic releases end up with price turning bearish. This is nothing but a mix of the fundamentals and the technicals.
But remember that the markets are not always right. Therefore, while price can rally into a major event, a disappointing news release could easily pull the currency lower. Forex news A forex economic calendar will show this in what is called the market expectations. Sometimes, a currency can appreciate even when the interest rates are low.
Forex Factory Calendar Feature #7: Actual Column
Not so much about how to strategize this intel into trade positions that minimize risk. It is, therefore, to get to grips with the Forex Factory calendar to minimize your risk in the same way that big money traders do as a matter of course. https://dotbig-com.medium.com/about To speed things up for you, here is a tip sheet on the ones to watch. The Forex Factory calendar is a good all-rounder in this regard as it flags up major headlines as high impact and offers explanations as to the significance of the news.
- And of course, this is not exclusive to one forex pair.
- You should not ignore the economic events coming under this category.
- For example, a U.S. nonfarm payrolls report will certainly impact the USD more than any other currency.
- The forex factory calendar can look daunting at first sight.
- To do this we need to understand how economic data can impact the forex market.
Therefore, it is not surprising to note that sometimes ahead of high impact news releases such as monetary policy decisions, the currency can rally or decline. However, a deep understanding of what each data point means or an ability to do economic forecasting is unnecessary for forex trading success by trading the Forex news news. This type of trading strategy is known as ‘forex news trading’. You have to tune that out and concentrate on events that will move the market. Hence, the importance of setting filters to only high and medium impact news events. You can find a majority of economic news schedules coming under this category.
What Is An Economic Event?
The currency that you check is the currency that you will see on the calendar. When you click on this icon, the news item expands and gives you more details. You should not ignore the economic events coming under this category. As such, ahead https://www.forex.com/ of the central bank decision, the markets already have a fair idea of what the central bank will do. For those of you who have traded stocks, you would know that the equity markets also has a calendar known as the earnings calendar.
Or snap elections which plays a major role in the currency markets also qualifies as an unscheduled economic event. As a trader, while technical analysis might be the primary way to trade the markets, it is also important that traders keep an eye on the fundamentals. This is because it is the fundamental events that form the basis for driving price action. Follow breaking news on global financial markets with our real-time news feed. Access forex news live and read about the latest trends affecting commodities, indices and more. The Forex Factory Calendar is an essential piece of kit for forex traders of all experience levels.
