The markets can turn on their heads in an instant, with even the most minor economic events possessing the ability to influence your pairings. With thousands of different drivers capable of impacting the markets and affecting the value of a currency, attempting to foresee the future of your combinations can sometimes feel like being presented with a ball of knotted string, and being asked to unravel it, never knowing which strand you ought to untangle first.
This is why it’s important to take advantage of the tools at your disposal. These offer your very best chance of unscrambling the intricacies of the forex markets, and can go a long way towards helping you forecast the future of your chosen pairings.
Here is where economic calendars come into play…
What is an Economic Calendar?
Economic calendars are exactly what they say on the tin: a calendar of important economic, political, and social events that might impact the currency markets. Many brokers and economic experts provide them for free online, and they detail all of the most important financial occurrences, alongside the exact date and time that they’re supposed to take effect.
What Should Economic Calendars Be Used For?
As you’ll already know, the primary aim of trading is to correctly identify future market movements, apprehend them, and make a profit from doing so. However, with a thousand different factors capable of influencing your combinations, keeping track of them all can be incredibly hard.
Economic calendars make this task much easier. They’ll help to pinpoint the exact dates and times when economic occurrences are about to happen, giving you a heads up well in advance of them impacting the markets. This means that rather than trading reactively to emerging trends and patterns, you can be proactive, and make your moves when prices are at their most favorable.
What’s more, you’ll have the time to research the event in advance. This means that you can look at forex publications and academic journals prior to making any moves, and decipher how the markets are likely to react to such an occurrence. Considering that most trends are simply a repeat of earlier economic cycles, this can provide an incredibly accurate insight into what’s about to happen.
In light of this, only one real question remains: can you afford not to use an economic calendar in your own trading? If the answer is ‘no’, then take a look at FxPro’s offering today, and see how it can help you.