How to read forex news calendar

A Forex news calendar is a schedule of upcoming economic events, news releases, and market-moving announcements that can impact the foreign exchange market. Here's a step-by-step guide on how to read a Forex news calendar:

  1. Understand the format: A typical Forex news calendar is a table or list that displays the following information:
    • Date and time of the event
    • Event name (e.g., GDP, inflation rate, employment numbers)
    • Country or region
    • Expected impact on the market (e.g., high, medium, low)
    • Previous value (if applicable)
    • Forecasted value (if applicable)
  2. Identify the most important events: Look for events with a high expected impact on the market. These are usually the ones that have a significant effect on the economy, such as GDP, inflation rate, or employment numbers.
  3. Understand the market's reaction: Pay attention to the expected market reaction to each event. For example:
    • A strong GDP growth rate might boost the currency, while a weak growth rate might weaken it.
    • A high inflation rate might lead to a stronger currency, while a low inflation rate might lead to a weaker currency.
  4. Note the surprise factor: Some events have a surprise component, which can also impact the market. Look for events with a high surprise factor, as these can lead to more significant market movements.
  5. Consider the country's economic situation: Understand the country's economic situation before the event. For example, if a country is experiencing a recession, a weak GDP growth rate might not be as surprising or market-moving as it would be for a country with a strong economy.
  6. Look for correlations: Some events are correlated with each other. For example, a strong GDP growth rate might be correlated with a strong employment number. Look for these correlations to better understand the market's reaction.
  7. Use the calendar to plan your trades: Use the Forex news calendar to plan your trades. For example, if you expect a strong GDP growth rate to boost the currency, you might enter a long position before the event.
  8. Stay flexible: Be prepared to adjust your trades based on the actual data released. The market's reaction might be different from what you expected, so stay flexible and adapt to the changing market conditions.

Some popular Forex news calendars include:

Remember to always use multiple sources and verify the information before making any trading decisions.