An economic calendar is commonly used by investors to track market-moving news, including key economic statistics and current government policy decisions. Such news can have a significant impact on the markets, influencing both short-term and long-term trends. Market-migrating events, which are usually formally released or announced in some media, also carry a high risk of affecting the underlying markets adversely.
There are many types of economic calendars. Most are designed for investor and market use. Calendar based tools allow users to identify economic data points that indicate trends or developments that could affect an individual investment portfolio. A number of online tools to provide this service at no charge. The tools are very helpful for traders and investors who need quick access to economic data that they need to make important decisions about their investments.
A traditional economic calendar makes use of 12-month months. Each month shows a different country’s data. For instance, one month shows the performance of Germany while the next month shows that China’s economy is growing at a rapid pace. Data from the previous month is omitted from calculations. It is important to note that even when data from a particular month is present, it does not necessarily follow that the performance of that currency in the succeeding months will be the same as it was in the previous month.
Each of the 12 months is broken down into 3 categories: indicators, data series, and calendars. Indicators refer to those factors that are affected by external variables such as economic reports released by countries or other entities. These indicators reflect the state of global trade, inflation, interest rates, and others. On the other hand, data series represent the raw data themselves. The contents of the data series can vary each month. For instance, in the US index of the Producer Price Index (PPI) the prices of particular items change every month.
For more clarity, sometimes the indicators and data series are displayed in separate windows. This is achieved by right clicking on the month that you want to view the data for. A new window will open up with the indicators for that particular month. When you click on these indicators, you will then notice a pie chart of the data series, which can then be viewed in your personal finance manager.
It is possible to choose the indicators that are most useful for viewing the current state of the global economy. For instance, for the US, you might want to focus on the Consumer Price Index (CPI), Purchasing Managers Index (PMI) or Producer Price Index (PPI). In addition, you might also want to choose the indicators that indicate changes in exchange rates between two specific currencies. The currency symbol for the selected currency is highlighted in the legend section of the indicator chart.
If you want to display all the data for a particular calendar month, then you need to select the “all indicators” check box. When this option is ticked, the data will be shown in an improved layout. By default, the indicators are arranged by the countries or regions that are reflected in the indicator charts. However, if you want to include other indicators, then you just need to select “other indicators”. You can select the various indicators that are available.
To get the most from the economic calendar, you need to ensure that you are aware of the data that is for display during any month. Although some indicators may have wider interpretability, it is important to keep in mind that they are presented only for a brief period of time. For example, the Purchasing Managers Index (PMI) only reflects the number of hiring that has been done in the last month. Thus, it cannot be used to make any inferences about the actual state of the economy. The best way to do so is to use the full six-month economic calendar.