What do Economic Calendars Report?

I know that starting out as a Forex noob can be an exciting time, but as you have probably already discovered, there is a steep learning curve, and many different terms, methods, reports and indicators to get to grips with.

When it comes to providing you with all important data to help you plan you trades, some reports are particularly invaluable.

An economic calendar is one such asset. You can find economic calendars online which you can use alongside your other Forex tools to help you identify important things in the global economic schedule that could impact your trading.

I first began my trading existence whilst trading CFDs with Alpari on MT4 and I moved on to Forex there on in and have since been hooked.

What is shown on an Economic Calendar?
As you might expect, an economic calendar shows dates. Specifically, it shows the dates when significant economic decisions or changes will come into effect. These are usually things that are connected with the central banks in different countries, or governments. Examples of things you might see listed on your economic calendar are budgets, interest rate decisions, and changes to things like GDP (gross domestic product) and CPI (consumer price index).

Why is it Important to Use an Economic Calendar?
While you might think that there are only a few of these type of events in a year in your own country, and it shouldn't be too hard to keep track, what you have to remember is that even within one given currency pair there could be a large number of countries to consider. The Euro for example, will be impacted by interest rate decisions in any of its member countries, and so if you do anything at all around the Euro you will want to be aware of upcoming economic decisions and changes across the Eurozone. Changes affecting a currency that isn't even in one of your pairs may impact the market overall, especially when they come from a strong economic power like the USA or China.

In addition to this, a big part of being a good Forex trader is being in tune with what is going on with economies around the world, and an economic calendar gives you a quick, at a glance reference that will help you to achieve this both on the day you are trading, and looking into the future when you are formulating longer term strategies or coming up with ideas for future trades.

How to Use an Economic Calendar
You should be referring to your economic calendar all of the time, and not just looking at things that are close enough to affect the trades you are working on right now. Get used to consulting the calendar and reminding yourself of upcoming events every time you set to work on your Forex platform. Think about how different decisions on major events like budgets might affect the way you trade, and be prepared for them with different potential courses of action lined up to try and capitalise on announcements when they come.

An economic calendar really is an essential for working effectively with Forex, so make sure you find one you find easy to understand and make it a part of your core toolset.