What is Forex Economic Calendar and why it is important?
Forex Economic Calendar is a schedule of economic events that will happen on the next day, week or month. It is very important for traders to make an informed and good decision. Forex Economic Calendar is a stress-free and quick way to stay on the top of fast fluctuating markets in the world.
Forex Economic calendar shows economic events in chronological order according to date and time or expected time to release with country flag. There are four types of impacts used to show the real-time effect on the market; no impact, low impact, medium impact, and high impact. Forex Calendar used to determine the upcoming market-moving events, bullish or bearish trends and effects of a particular news release.
The traders who want to go short, the Forex Economic calendar can be beneficial, if they properly guess about the market position after the announcement. Forex calendars are easily available to the public for free.
A few popular effective reports in Forex Calendar are explained in this article. The productivity report plays a vital role in the measuring ranks of the production, achieved by organizations per labor unit, using labor figures and Previous Gross Domestic Product. Increase in production is beneficial; it increases the actual and real income.
The price-weighted index measured at the producer or wholesale level excluding imports, known as Producer Price Index (PPI). This report is very important to indicate inflation, having a good effect on the market. Producer Price Index and Industry Index Figure which influences manufacturing price excluding volatile energy both are the most important indicators used for valuable decisions to gain more profitable trade.
The Purchase Manager Index (PMI) indicates the monthly reports derived from inventories, orders, deliveries, production and employment level. The overall health measure of an economy takes a long time to complete and direct effect on the Forex market called Grand Domestic Product (GDP).
Unemployment rate indicates the percentage of the labor actively looking for jobs, impacts on the economy of the country. The good traders give few minutes regularly to Forex Economic Calendar, attentive with the economy of the county in which they trade.
When a piece of Economic news released, brings the stages of less liquidity in the Forex Market, it is difficult to trade your desired prices due to the increasing the values of spreads. Therefore, traders want to avoid unnecessary losses, caused by the volatility of the market, they must be aware of all the dates and times of the Economic news releases.