The United States economic calendar is perhaps the most significant one, as the country is by far the largest in the world. It influences all other economies, with many important implications in the foreign exchange and currency markets. More importantly for investors, it helps determine the course of action for both long and short term decisions. Economic calendars provide information on trade flows and the balance of trade between countries.
As per an economic calendar, the value of US Dollar is expected to depreciate against major currencies over the coming few months. The currency traded against the US Dollar is likely to show a strong upward trend, causing investors to invest in it. Accordingly, the exchange rate between two currencies is also predicted to show a strong upward trend. Considering the recent weakening of the US Dollar against most of the world currencies, this factor has a major impact on the global economy. It is due to this reason that investors are expecting a continuation of the current trend of appreciation of USD.
Forex Currency Market is one of the biggest trading platforms and traders across the world have their transactions in its database. Economic calendar data provides important information on currency trades. Most of the currency quotes in the market are estimated using statistical methods. As compared to other economic event calendars, Economic calendar data is considered as the most reliable indicator of the movement of any currency in the Forex market. This is because of the following reasons:
Central Banks intervene in the Forex market to control currency trades. When a central bank is involved in the trades, it alters the interest rates and other interest rate instruments. This helps to stabilize the financial markets. Moreover, central banks provide incentives to commercial banks, which help keep liquidity in the financial markets.
Economic calendar data can be used by investors and traders. As the data released by the economists and other financial experts on any particular month can affect the rates of interest, most of the traders will try to take advantage of the changes of such economic indicators. Usually, when a previous release of this calendar has been released, the rates of interest will decrease. However, if the economic indicators do not change according to the current release, the traders will hold off from making any trade.
Economic calendar Indicators are used by many financial institutions to predict the movements of foreign currencies and interest rates. Based on the economic indicators, traders can predict the movements of currencies within one day. As the time left for future trades is indicated on the indicator bar, the traders can determine the size of the trade. For example, when indicators show that the time left for trade is only 5 min, the trader should not take advantage of it and make no trade at all. In case, the time left for trade is more than 10 min, the trader can opt for some kind of trade.
Important Economic Releases are released in a month to give the trader’s some information about the movement of prices. Usually, when there are some surprises in the economy, the prices of commodities will also go up or down. This is one of the reasons why traders look for the best economic calendar Indicators. As the indicators are released every month, they are able to give the trader’s some information on the movements of the prices of the commodities in a particular period of time. These are very important indicators to base your trading decisions on.
It is important to note that the release of the economic indicators does not necessarily mean that the central bank will announce any significant change in the official policy. The announcements can only be considered as supportive statements to the existing policy. Hence, it is always better to consult your financial adviser before deciding to go ahead with any of these announcements. The release of the relevant indicators will help you to get some idea on the movements of the market and will also let you know about the changes in the policy.