Using our finance calendar, you can always keep track of the latest important financial events that may impact market fluctuations.
Governments and other institutions around the world are constantly measuring and reporting on economic growth and data. A reliable Finance Calendar is a major tool for traders.
For example, the release of key employment data, such as the U.S. Non-Farm Payrolls, can cause significant fluctuations and spreads in currencies like the Eu to the U.S. Dollar. If the spread is 50 pips, the market will lack liquidity within this range, temporarily preventing you from exiting or entering new trades.
Before the release of economic data, analysts will attempt to predict the results and form a consensus. If the data is very important, and there is a significant difference between the reported value and the estimated value, it may cause high volatility.
Finance Calendar Instructions
At the start of a new trading week, make sure to check the impact level of each upcoming event. You can do this by looking at the icons next to the event names. Events with a strong impact are indicated with a red icon, while those with a moderate impact are marked with an orange icon. This can help you better understand the potential market impact of each event.
On the finance calendar, the ‘impact’ value is used to indicate the potential effect that the report may have on the market. If the data released in the economic report differs significantly from the forecasted or expected data, it could lead to severe market volatility. However, if the data matches expectations, then the report’s impact on the market may be minimal or nonexistent. In other words, the ‘impact’ value is an indicator of the market’s response strength to an economic report. It can help traders predict the market’s possible reaction and formulate trading strategies based on this information.
Traders typically look at upcoming events on the finance calendar for two main reasons. First, they want to avoid trading during periods that may experience significant price fluctuations, in order to reduce risk. Second, they aim to capitalize on market volatility to find the best entry and exit points for new or existing trades. In short, these traders are using the finance calendar to optimize their trading strategies and attempt to profit from market volatility.
In most forex finance calendars, you will see the following important values.
Previous value：Displays the results of the previous month, which may change as there can sometimes be variations compared to the results of the preceding month. Such situations can lead to fluctuations.
Predicted value：Forecasts are displayed based on the results of the analysis of economic analysts.
Actual value：Actual reported data is shown and may fluctuate if it differs significantly from the forecast.
Influence：The reported potential size is indicated by a colored icon next to the incident name. Red is strong impact, and orange indicates moderate impact.