What is Fundamental Analysis?
Why Forex Traders Need Economic Calendars
- Forex news traders need to know what kind of fundamental news is coming out that has a great chance of impacting the Forex market and they want to capitalise and make a profit on the resultant market move that happens when the news is released.
- Some traders are not Forex news traders and they need the Forex calendar for a different reason: to avoid trading during news release times and dates because the price move during news times is so volatile that they just don’t want to be in a trade when the news is about to be released. Only after the news is released and the market settles down then they start looking for trades setups to trade.
- Some Forex traders need to Forex calendar to move their stop loss closer to lock in a lot more profits when they know that a major news is about to be released because they know, the market can go either way, up or down and this can work against their current running trade and eat up whatever profits that they have accumulated so far.
- How to read the impact.
Red = Forex news with high impact expected
Brown = Forex news with medium impact expected
Yellow = Forex news with low impact expected
- How to understand the Forecast.
Right after the actual column, you have the forecast column. The forecast column shows you what economists were forecasting before the news was to be released. Whether they were right or not is determined by the “actual” figure that comes out in the actual column.
Both the forecast column and actual columns are really important because many traders react to the differences in the forecast and actual.
Here’s an example:
What if the economists were forecasting that The Bank of England was going to decrease the interest from 2.5% to 2% this month?
So traders would be expecting based on the forecast that the actual figure would be 2% but what if the news came out and the interest rate remains the same, at 2.5%?
How do you think the traders will react to that? The most likely outcome would be that there will be lots of buying of the GBP.
Kudotrade Economic Calendar
Our Economic Calendar is for professional traders. It keeps traders connected to the markets.
www.kudotrade.com/economic-calendar