Traders may benefit from using a forex economic calendar by better understanding future news events that might have an impact on their fundamental research. An in-depth analysis of the DailyFX economic calendar will be provided in this article, along with advice on how to use it to plan, control risk, and support strategic trading decisions.
What is an economic calendar?
- An economic calendar is a tool that informs traders of critical economic data that will be announced in essential economies. These occurrences could include well-known statistics like the GDP, the CPI, and the Non-Farm Payroll (NFP) report. Also, knowing the date of the upcoming central bank meeting or significant news announcement might be very helpful in the current climate of fiscal cliffs and central bank involvement.
- The events on the DailyFX economic calendar are organized by country or region, timezone, and relevance level, based on how likely they are to impact the market. As a result, the economic calendar looks like this.
HOW TO READ THE FOREX ECONOMIC CALENDAR
- Understanding how to correctly read the forex economic calendar is critical to making the most of your analysis and trading plan before and after the most significant releases. You can keep up with important events by looking at the calendar first thing in the morning. Then, consider the economists’ predictions for the events (those that carry them) as they can influence the outcome when the ‘real’ posts compare to the predictions, helping shape market expectations.
- The calendar’s default setting will display the recent economic news from the major economies. However, you should customize the appearance because, for many people, that will be information overload.
CUSTOMIZING YOUR FOREX ECONOMIC CALENDAR VIEW
- Tuning the FX economic calendar involves refining the available information to the markets most relevant to you. You can apply the following special modifications to the economic calendar:
- By selecting the ‘Today,’ ‘Tomorrow,’ and ‘Next Seven Days’ buttons, you can view occurrences from the past, ‘now,’ and in the future.
- Adjust the time zone to what you’re most comfortable with; this is done by clicking “Time Zone.” For example, American dealers on the East Coast may choose Eastern Standard Time or GMT-4/GMT-5.
- To choose the regions with the most pertinent events or the currency crosses you want to study, click the ‘Country/Region’ option.
- Filter events by their amount of relevance in the ‘Importance’ tab.
Using the economic calendar: An example
Suppose you trade EUR/USD and want to concentrate on important news from the US and the Eurozone in the upcoming week. Here is a short, step-by-step tutorial for achieving the desired outcomes:
First, under the top menu’s timescale selections, select “Next seven days.”
Next, choose your preferred timezone by clicking the “Timezone” option below.
After that, choose “Country/Region” in the “Euro Area” tab, and then choose the Euro Area countries you want to see. Finally, choose “United States” from the “Americas” category.
In the ‘Importance” tab, select “high.”
Your filter may then appear as follows:
- When you click on the “Euro Area” and “Americas” tabs, you should only see news items from the Eurozone and the US that have a significant chance of affecting the market if they surprise investors, economists, and other market participants.
- In the illustration below, for instance, the search has turned up important Eurozone economic events and the approaching US Fed interest rate decision.
By selecting the “Add to Calendar” option, you can add each event to your email calendar and learn more about it, get related news and analysis, and learn more about it. For example, to learn more about the significance of the Fed interest rate decision event, click on it below.
TOP BENEFITS OF USING A FOREX ECONOMIC CALENDAR
Using the DailyFX forex economic calendar has the following significant advantages:
Having good risk management skills
being able to anticipate needs
having access to additional, beneficial customization features
Risk Management, first
Planning your trades around significant economic calendar events prepares you for anticipated market volatility. Whether data is released substantially above, below, or in line with expectations, a period of volatility may be anticipated when an event on the calendar approaches.
Recognize the risk management tenet as it relates to these trades. Risk is the position size times the difference between your entry and stop loss prices.
2. Forward Planning
Planning is possible thanks to the FX economic calendar. For instance, traders will be aware that a nonfarm payroll report is about to be released because of the indicator’s “high” relevance, which can significantly affect FX markets. By knowing the event’s timing, traders may plan their forex transactions appropriately.
3. Taking Use of the DailyFX Forex Economic Calendar’s Features
The forex economic calendar offered by DailyFX also benefits from unique features, such as the customization option described above. It allows you to choose specific timeframes, set alerts, and apply filters to make it more pertinent to your trading approach. To assist you in scheduling trades around essential news releases, DailyFX also provides free trading webinars.
KEY FEATURES ON THE DAILYFX ECONOMIC CALENDAR
- You’ll discover that the DailyFX economic calendar has several features to enhance your experience and simplify planning and setting priorities. They consist of nearly real-time updates, user-specific settings, and a more thorough examination of specific economic data releases. Below are further details on the primary benefits.
- Discover significant releases from the top nations and regions throughout the world. In addition, you now have greater access to the crucial global fundamental drivers thanks to DailyFX’s expansion in the areas it covers from 10 to 41.
- Keep up with fresh, lightning-fast updates. With our new speedier updates, sent in close to real-time, traders no longer have an excuse to miss the newest releases.
- Make your calendar specific to your needs.
- The DailyFX economic calendar will remember each user’s preferences, enabling them to view only the most pertinent information for their interests.
- Deeper analysis with better data We now provide historical data charts for each of our economic data releases. This gives users the ability to contextualize current results in a much more thorough manner and provide a thorough explanation of the data in context and why it matters.
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