An economic calendar is a tool used by investors to keep track of important events that have the potential to move the financial markets. These events include the release of monetary policy decisions and economic indicators. These events are often announced ahead of time and have high probability of affecting the financial markets. Using an economic calendar can make the process of investing much easier and more efficient.
An economic calendar is a useful tool to help investors plan trades and reallocate portfolios. It lists the upcoming and previous events that could affect a particular currency or stock. It generally focuses on the scheduled releases of economic data for a particular country. This can include things such as weekly jobless claims and new home starts. It may also include regular reports from central banks and economic sentiment surveys. In the United States, for example, the release of GDP data is released on a quarterly basis, giving investors a good idea of the strength of the economy.
The economic calendar allows users to filter the events by timeframe. By choosing a timeframe, they can focus on key economic events that could affect their technical and fundamental analyses. Another useful feature is the ability to customize the calendar. It is possible to display only the economic data for a specific country or region, which is ideal if you use it as a reference for your trading strategies.
An economic calendar is useful for investors because it highlights major events that will affect the financial markets. Important economic data can move a stock or currency price significantly. Many trading websites and trading platforms will provide free economic calendars. Most of these calendars are user-friendly and automatically updated. Keeping up with major events is essential for long-term Forex investors.
A key component in the economic calendar is inflation. This measure is used by central banks to determine whether the economy is gaining strength. If it is rising, then it will likely result in higher interest rates. On the other hand, if it is declining, the central bank will probably lower interest rates. So, a regular monthly inflation report may indicate a strong economy.
There are three main features of an economic calendar. First, it lists the date and time of each event. It also provides data on the volatility. Inflation, for example, will be highlighted in countries that report CPI data. In addition, you can select up to 43 countries in the country section to only see the economic events that are happening in those countries. Another useful feature is the volatility slider bar, which enables you to select the level of volatility.