The PinoFX Economic Calendar covers financial events and economic indicators to help global investors remain updated and make informed trading decisions. Key economic indicators such as Gross Domestic Product (GDP), interest rates, unemployment rate, Central Bank Minutes and Consumer Price Indices (PMIs) (measure for inflation) are key drivers for currencies and important market-moving events. Our real-time economic calendar provides everything you need to know in order to understand current and future economic activity, identify opportunities and prepare, plan and execute your trading strategies.
What is an Economic Calendar?
The economic calendar is used by traders and investors to monitor market-moving events and plan their trading.An economic calendar includes all the scheduled releases of economic data and financial events for a given country that may affect the movement of currencies’ prices and markets. It is a useful tool for investors and traders, who follow economic updates in order to plan their trades, organise their portfolios and better understand how such market movements could in turn affect chart patterns.One of the key indicators that is usually closely watched by investors is the Purchasing Managers’ Index (PMI) data by IHS Markit which offers accurate insight into global economic health. Another crucial event is monetary policy decisions undertaken by each country’s central bank aiming at managing money supply and interest rates. Both indicators are significant market releases that usually result in market volatility, particularly when the released figures fall above or below market expectations.Traders and investors rely on the economic calendar to give them the necessary information and trading opportunities so they can organise and time their trades around the release of economic data or events that are expected to have a major impact on the markets.
What are Economic Indicators
Economic indicators create volatility and for that reason they provide some of the best opportunities for trading. As a piece of economic information, economic indicators are useful to identify current and future trading possibilities. As mentioned here, they can be anything from the Consumer Price Index (CPI) to the price of crude oil or consumer confidence survey and housing starts.Economic indicators are separated into three categories: leading, lagging and coincident.
Leading indicators are used to forecast future economic activity. Lagging indicators such as unemployment rate and interest rates are information that follows an event and comes after large economic changes. Finally, coincident indicators such as GDP and retail sales are real-time data that show the activity of a particular area or region and coincide with specific economic activities.
While various economic indicators provide useful information on a specific economy’s health as well as trading opportunities, the truth is that wise investors utilise multiple economic indicators at the same time and avoid relying on only just one. By gleaning multiple sets of data from different aspects of the economy and combining it to gain a wider understanding of the market, traders are able to make better decisions when trading forex online.
