One of the important tools for making forex trading decisions is the Economic Calendar. It is especially useful for fundamentalist traders and news traders. However, traders who rely on technical analysis should not overlook important information. So see economic calendar where? How to view economic calendar like?
See also: Instructions on how to play forex for newbies
What is the economic calendar?
Economic calendar is a constantly updated information panel of economic information published on the calendar of countries with strong economies in the world.
There are about 40 countries on this list. However, the information that is most interested in and reported is the US, UK, Japan, Canada, Australia, Germany, France, Switzerland, the European Union ....
The countries' information disclosure plans are clear. In particular, when and when the Government organization will publish relevant information. Forex investors will use that economic information and data to make decisions about their actions.
The basic components of the economic calendar
There are many organizations that build economic calendars according to different interfaces. But it will include the following indispensable components:
Time displayed on economic calendar: Usually shows in EST time (New York time). Sometimes it will be readjusted from time to time for each country to make it easier to see.
Publication time: Is the scheduled time for publication of economic data.
Currencies affected: Displayed by the flag of that country.
The event is published.
Influence level (importance): Divided into 3 levels: Low impact (often with gray icons); Medium impact (often with yellow icon); And strong impact (often with red symbols).
Actual data (Act): This column will only be filled after the news has been published.
Predictive data of experts (forecast).
Data of the previous period: Is the published data of the previous period (usually the previous month).
Figure below: Economic calendar in Vietnamese at page fx24.net
Figure below: Economic calendar in English at fx24.net
How to view economic calendar like?
Understand the meaning of published economic data and information
To know how to apply the economic calendar in forex trading, you must first verify the meaning of the published events and information.
To understand these meanings, click directly on the published information stream. In it it has a link to a page that explains the meaning of the event. On this page, people not only explain the meaning of each news item, but also show how the strength and direction of impact on the currency are related ....
After clicking on the link above, the page explaining the meaning of the information will display:
If you are not fluent in English, you can go to the Economic Calendar in Vietnamese. In fx24.net has integrated both English and Vietnamese versions.
What economic information do you need to care to trade forex?
Just by looking through the economic calendar, you will see which news are marked as weak, medium or strong impact as instructed above. The information has a weak impact for professional analysts to analyze further. You do not need to care about the weak information. You only need to care about medium and strong impact information. Even a technically-focused trader only needs to pay attention to some extremely powerful news.
The strong information that forex investors should be interested in is:
- GDP data is published monthly, quarterly and annually.
- The CPI inflation index is published monthly, quarterly and annually
- Central bank interest rates: Includes published rates and hints of central bank leaders about future interest rate direction. Of these, the most important is the decision of the Fed - US Federal Reserve.
- Nonfarm News: Relating to US employment, unemployment rate ... This is a very important piece of information that will be published at 8:30 pm on the first Friday of the month (Hanoi time). >> Find out more about the Nonfarm news.
- Monetary policy of the countries.
- Retail Sales (Retail Sales).
- Industrial and service production index (PMI)
- ………. In general, news with strong markings (red or 3 stars).
See economic calendar where?
There are several organizations in the world that will summarize all the economic information scheduled for about 40 most economically affected countries. From here, many large and reputable websites will ask for the right to automatically update information about their site. Typically, you can view the updated economic calendar on your site FX24.net. Or you can go directly to the following link:
ECONOMIC CALENDAR
At FX24.net, you can view the Economic Calendar both in Vietnamese and English versions. But if your English is good, I recommend you to see the English version to the full.
Or you can go to another famous page forexfactory.com to see the economic calendar (Calandar).
Should you trade by news?
First of all, it must be confirmed that the news in the economic calendar is very useful for trading forex decisions. But you do not need to spend too much time on that news, especially for traders who deal with the technical side.
As a forex trader, you should only care for news that has strong impact.
Trading on strong news is risky. Therefore, whether or not to trade according to your choice is your option. But the most important thing when dealing with news is having a clear trading plan. You must always set a stop loss and have a capital management plan. Even in case of market liquidity and price jumps.
There are some disadvantages when you trade under strong news you need to note:
When the news is strong, many safe investors will stand outside the market, causing low liquidity. Low liquidity together with high risks will cause spreads of the exchanges to be stretched sharply, meaning that transaction costs will increase. Low liquidity will sometimes prevent you from opening and closing orders. Even the price will jump over a set stop loss level making the loss larger than expected. Of course, if you're lucky, you can also benefit by jumping in the direction you anticipate.
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Author: Pham Khuong
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