The economic calendar provides information about all the important events of the trade market. The traders need to get their hands on the economic calendars of the marker to stay updated and not to make any mistake that will result in a loss. They can plan their traders accordingly with the calendar and can also make a fundamental market analysis. For the latest information, please visit this site https://myfxtools.com. The forex broker mostly provides these economic calendars to the traders for free. Also, many other companies offer these calendars free of cost.
Components of an economic calendar
Apart from the date and time the forex economic calendar also includes, previous and upcoming economic events, future predictions, the impact or importance of any event, the real data, and prior readings. In short, it is a complete guide for the trader to make a good strategic plan and analysis of their trade to earn a profit.
Employment rates are essential for the banks because they reveal the strength of any economy. With the help of employment data, the banks plan their interest rates. For instance, when the unemployment rate becomes low, and the wage rate increases, the banks increase their interests. The data of the employment rates of all the countries is s released every first Friday of the new month by the Bureau of labour statistics (BLS). Once the data is removed, the traders can look for the number of people employed in the previous month, the unemployment rate, and at last the wages rate.
Another critical component of the calendar to be worth mentioned here is the inflation rate. It directly influences the interest rate. If there’s a high inflation rate, the banks increase the interest rate, but if the inflation rate decreases, the interest rate also decreases. The information about the inflation rate of a country is provided every month by the Bureau of statistics.
Economic activity data
Economic activity data provides information about the performance of the economy. Mostly this data is provided by the government agencies and sometimes by industrial groups and a few external research agencies. Retail sales and purchasing managers index is the most common economic activity data on the forex economic calendar.
Central Bank meetings/ interest rates
Central Banks are the necessary financial institutions in the forex market that have the authority to decide the interest rates. In most countries, the central banks held meetings every once a month to discuss the interest rate. The decision of these banks can either lead to a decline or increase of a particular currency. Except for this data, other data such as the statements or speeches of the bank, officials are also included in the forex economic calendar.
Other economic data
Except for the above mentioned important data, the economic calendar also includes other ex events. Such as the crude oil inventory data which is released every Wednesday by the energy information administration. And GDP data, which is very important for banks to understand the different economies. And also the Confidence. If a consumer and a company are quite confident about the economy, then it is more likely that they will spend more.
How can economic calendars increase profits?
Every event in the economic calendar has an impact on the market. A trader is more likely to be successful if he looks into the economic calendar before investing or trading. The economic calendar can help the trader to come up with a strategic plan which will ensure maximum profits.
Just like before selling gold or property one looks into the market trends and news so that one doesn’t end up with a loss just like that the traders must look into the ex calendar before making any decisions.