Trading on the Forex market requires constant analysis of data released by governments around the world. There are reports, studies and other data sets released throughout the year, and overlooking just one release could mean missed opportunities and major financial losses. Proper tracking can ensure that you stay ahead of the game and make accurate predictions that lead to profitable trades.
An economic calendar is designed to track release dates for reports and other key events. Anything that is set to happen in the future which may affect market fluctuations is added to the calendar, so you always have a guide when determining how to spend your time analyzing the market.
There are two ways to make use of a Forex economic calendar, and many successful traders blend both of these together:
You may start out with a Forex economic calendar offered by Bloomberg or another source that you trust, but you will eventually want to keep your own calendar. Your personal calendar may include notes and symbols that help you prioritize all entries so that the most important release dates are prominent.
Your calendar allows you to make the most of your time when analyzing financial markets. You can check the calendar daily to see what reports are coming out, so you never miss anything important and you don't waste time searching for trends in the market.
Once a new report is released, your job is to analyze the new data and see how it fits into the bigger picture with data from other reports. This will help you see the larger Forex market so that you can make accurate predictions for specific currency pairs.