Forex Factory Calendar News: Mastering Economic Events for Forex Trading Success The Most Reliable Forex Trading Educational site

forex factory economic calendar

Yes, it is recommended to combine the insights gained from the Forex Factory Calendar with technical analysis. By integrating fundamental and technical analysis, traders can make well-informed trading decisions. Utilize stop-loss orders to limit potential losses and take-profit orders to secure gains. These orders are especially important in trading Forex Factory calendar news, as price movements can be swift and unpredictable. GDP releases provide a comprehensive view of a country’s economic performance. A higher-than-expected GDP growth rate can lead to currency appreciation, while a lower-than-expected rate may cause the currency value to decline.

Determine appropriate position sizes and leverage levels to minimize risk while maximizing potential returns. Trading with excessive leverage can lead to significant losses, especially during news-driven market volatility. Employment data and unemployment rates can affect a country’s economic health and, consequently, currency values.

Economic indicator analysis

The Forex market volatility increases tremendously during the Fed presser. Press representatives ipcc paper revaluation from around the world ask questions. Effectively, it trips stops both for longs and for shorts.

Because part of the fundamental analysis of Forex market is to trade expectations. In this case, based on the inflation data, expectations grew that the central bank will cut rates at the next meeting. Cutting rates are bearish for a currency and sellers step in. Maximize forex trading potential with Forex Factory Calendar. Stay informed on key economic events, currency data, and market trends.

ECB President Lagarde’s Speech

These moving averages smooth out price data to reveal underlying trends, which can be useful when trading Forex Factory calendar news. Everyone knows these days that the ECB has a problem with inflation in the Eurozone. As part of the ECB’s mandate, a normal inflation should hover around 2%. In this relation, levels of 1.8% or 2.2% are enough for a steady economic growth.

  • After the Bretton Woods conference, the USD became the pillar of the world’s financial system.
  • To avoid spending wasted time scrolling through news information that won’t apply to you, you should consider setting up an event filter.
  • Press representatives from around the world ask questions.
  • Or, inflation without transportation, energy and food costs.

The calendar helps traders stay informed about critical economic events, allowing them to anticipate market movements and adjust their trading strategies accordingly. It enables efficient planning, volatility analysis, and the incorporation of fundamental analysis into trading decisions. Chart patterns, such as head and shoulders, double tops and bottoms, and triangles, can provide valuable insights into potential price movements following news releases. By recognizing and understanding these patterns, traders can enhance their news-based trading strategies. Traders can customize the calendar by setting filters based on impact level, currency pairs, and specific time periods. This allows them to receive only the most relevant information for their trading strategies.

Economic calendar

Strong employment data may result in increased consumer spending and economic growth, leading to currency appreciation. While it’s nice to see all the information, you’ll probably feel overwhelmed with all the data the forex calendar is going to give you. So, it’s better to stay organized and have only the information you need immediately.

Gross Domestic Product (Third Estimate), Corporate Profits (Revised Estimate), and GDP by Industry, First Quarter 2023 – Forex Factory

Gross Domestic Product (Third Estimate), Corporate Profits (Revised Estimate), and GDP by Industry, First Quarter 2023.

Posted: Thu, 29 Jun 2023 07:00:00 GMT [source]

Higher inflation levels lead to the central bank raising rates. Contrary, lower inflation results in the central bank cutting rates. Higher rates mean a higher currency, while lower rates are bearish for a currency. The best way to interpret economic news is to have a trading plan for the week/period ahead.

Gold to trade sideways in the short term, brighter outlook in the longer term – SocGen

Another thing you can do to save you time is to select the news only of the countries you want to follow. However, we’d recommend checking all the biggest economies because it’s important to know what’s going on and how the major currency pairs can be impacted. Using the event filter in the Forex Factory calendar will give you the option to restrict the news that you see so that you’ll only have information about your preferences. If you only focus on particular currency pairs as a trader, then you’ll want to set-up your event filter to prevent yourself from feeling overwhelmed with unnecessary event information.

forex factory economic calendar

Emotions can cloud judgment and lead to impulsive decisions, which can be detrimental to trading success. Maintaining discipline and following a well-defined trading plan are crucial when trading Forex Factory calendar news. A press conference follows forty-five minutes after every ECB meeting.

FED Interest Rate Decision

The President reads the statement, and press representatives ask questions. During the press conference, the ECB President (Mario Draghi) supported the rate cut. However, he added that the ECB expects inflation to pick up next year. Therefore, the federal funds interest rate level is THE Forex news to watch. As a rule of thumb, the higher the interest rate goes, the stronger the dollar becomes.

The chart above is only an example of how a Forex fundamental analysis strategy might work. Presidential elections and the 1st round of the French elections were difficult to interpret, the Fed’s rate hike wasn’t. You can also get access to breaking news when you need it so that you can be aware of new information that could impact your trades. Brokers and market makers offer FXStreet’s calendar to their clients as a tool to trade.

forex factory economic calendar

It’s essential to understand both the forecast and actual columns. Most traders look at the differences between these two columns and analyze them. High-impact events are events that are expected to have a significant influence on the market. These can include central bank interest rate decisions, GDP releases, employment reports, and geopolitical developments. Moving averages, such as simple and exponential moving averages, can help traders identify trend direction and potential support and resistance levels.

Is the Forex Factory Calendar free to use?

To avoid spending wasted time scrolling through news information that won’t apply to you, you should consider setting up an event filter. In the currency column, you’ll see information about currency pairs that will be affected by the release of particular forex information. For example, let’s say that the United Kingdom decided to announce interest rates. That means that GBP and the currency pairs that are linked to it will be affected. The Forex calendar news is the reason why these robots trade. They buy or sell based on the difference between the actual and forecast value of the economic calendar Forex news.

Its calendar provides great information for all types of traders. Using it will help you to understand the impact of news on the market, which could reflect on increased profit on your account. A flag icon indicates the country of the data release, and next to it, its currency. So you can quickly scan and see what currencies might be affected today or in some specific days.

About the Author

Leave a Reply

Your email address will not be published. Required fields are marked *

You may also like these