Reading an Economic Calendar
Economic news drives currency movements. Learn to read the calendar like a professional.
What is an Economic Calendar?
- Schedule of economic data releases
- Shows expected impact on markets
- Essential tool for any forex trader
- Available free online (Forex Factory, Investing.com)
Understanding Impact Levels
High Impact (Red)
- Major market movers
- Interest rate decisions
- Non-Farm Payrolls (NFP)
- GDP, Inflation (CPI)
- Can move markets 50-200+ pips
Medium Impact (Orange)
- Notable but less volatile
- Retail Sales
- Manufacturing data
- Consumer confidence
- Moves of 20-50 pips typical
Low Impact (Yellow)
- Minor market effect
- Housing data
- Trade balance
- Usually safe to trade through
Key Events by Currency
USD (US Dollar)
- FOMC Meetings / Rate Decisions
- Non-Farm Payrolls (NFP) - First Friday
- CPI (Inflation)
- Retail Sales
EUR (Euro)
- ECB Rate Decisions
- German data (GDP, PMI)
- Eurozone CPI
GBP (British Pound)
- BoE Rate Decisions
- UK Employment
- UK CPI and GDP
Trading Around News
Before News
- Be aware of upcoming releases
- Consider closing or reducing positions
- Spreads typically widen
- Set wider stops if holding
During News
- Extreme volatility
- Spreads spike dramatically
- Slippage is common
- Not recommended for beginners
After News
- Wait for volatility to settle
- Trade the established direction
- Often provides clear trends
Practical Tips
- Check calendar every morning
- Mark high-impact events on your chart
- Know which currency each event affects
- Actual vs Forecast is what matters
- Previous reading provides context
Lesson Discussion