How to Read the Economic Calendar


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Video Transcription:

Hello Traders. Welcome to the News Trading Course and the first module, “The Economic Calendar.” In this lesson, we’re going to learn how to read the Economic Calendar, and what we’re going to do is we’re going to go through a few Economic Calendars that you can find out there, but we are going to end up with investing.com’s Economic Calendar. We are going to quickly review Forex Factories Economic Calendar, but I prefer investing.com’s because it’s easier on the eye and the features allow you to filter out the highest impact events and the actual economic events that we are waiting for.

When it comes to how quick both calendars react to the news or how quick they deliver the actual numbers, it’s basically the same and it’s basically automatic. We’re going to jump right now to the actual calendars and we’re going to go through them. I am going to teach you how to read them, and of course how to filter out the news that we want.

Economic Calendar

All right, we’re back and this is Forex Factory’s Economic Calendar. As you can see, we are at forexfactory.com, and what you have to do is just click on calendar and it’ll prompt you to the calendar page. As you can see, we have selected the entire week from May 10th to Friday, the 15th. But of course, you can filter out or you can just select today’s news, tomorrow’s news, and yesterday’s news to review the data that has come on the wires. Now, we’re going to select today’s news, well this week’s news, and we’re going to go through what every one of these numbers mean. Now, let’s focus on the Great Britain Pound. We have an official bank rate and asset purchase facility. If you don’t know what these are, you can always click on open detail and it’ll tell you all the specs that you need to know.

For instance, the measures, or what this number measures, which is the interest rate at which the Bank of England lends to financial institutions overnight, the frequency that it’s scheduled, notes on the actual numbers, why traders care, etc. If you don’t know what a release means, you have to click on this folder-like link and it will open up the specs and of course, it will open up the actual number, which is this one, right here, the forecast, which was no change in the rate and the previous.

News Events Economic Calendar

As you can see, we have the actual number after the release comes out. Before the release comes out, we only have the forecast and the previous number. In this case, if you open up the folder-like link, you are going to get all the previous numbers and you can get all sorts of graph of the actual change from 2007 till 2015. As you can see, this rate hasn’t changed since March 2009. This is how you hover through the Economic Calendar on Forex Factory. I’ve got to tell you something. I think that they have improved a lot when it comes to the Economic Calendar and how fast you get the news. For example, let’s say that we are watching the Aussie right now because we have at 9:30, the home loans.

Right now, it’s 8.55 my time, so we have around 35 minutes till this data comes out, which are the home loans month over month. If you don’t know of course what that means, you have to go to the specs and you can look. If you are already used to looking at the numbers right here, you don’t have to open up the graph, but it’s always good to get a visual representation of the best changes in this data. You can just look at the forecast and you can look at the actual number. For example, right here, the last month the forecast was for about 2.8 or 2.9, and the actual number was 1.2. We can see that the forecast was 3% and the actual number was 1.2%, and the previous number was -1.7%. This is how you hover through the Economic Calendar of Forex Factory. Let’s go quickly to investing.com and let’s go through its Economic Calendar.

investing.com economic calendar

investing.com economic calendar

Let’s continue to investing.com and just go through the Economic Calendar. On the homepage, you just have to hover down and go to Economic Calendar, right here. You have the link and it will prompt you to the actual Economic Calendar page. Now, what we didn’t go through on the Forex Factory Calendar, and I have to go through, are the filters. You can filter out high impact event, medium impact event, low impact event, or non-impact at all in the markets. You can choose the currencies that you want to monitor. Because if you don’t trade, for instance, the Swiss Franc as I do, I don’t trade the Swiss Franc, or if you don’t like to trade the Japanese Yen, you can filter them out, so you won’t get Japanese Yen or Swiss Franc news. And of course, you can filter out by growth inflation or by type of event on the Forex Factory Calendar. If you go back to the Economic Calendar on investing.com, you have also a couple of filters. You can filter out by country, by importance, and of course by category.

The Economic Calendar is basically the same. It’s a little bit easier to use and more vision appealing for me, but personally, to be honest, both calendars work the same way and they have the same applications.

Let’s say that right now, we want to see tomorrow’s event. We have Japanese Yen events, we have manufacturing, production, month over month for March. And as you can see, we have the forecast of 0.3 and a previous number of 0.4%. If you click on the actual event, you are going to get sent to the actual description of what this number means for the markets and for the economy. Then, you’re going to have, of course, the graph of the previous number’s releases and forecasts. If you hover, for example, on one bar, you are going to get the date of the release, the actual number released, the forecast, and the revised numbers, and of course, you also get the previous releases. What I like about investing.com is that they also filter the news or the news releases that they posted on their sites for the previous numbers.

If you want to get more in depth, or to know more about the event that you are currently watching, and what it means for the economy and what it does to actual price action, you can go to one of these news that were released by investing.com. Basically, this is how you are going to read the Economic Calendar. These are the basics. Further on this course, we are going to teach you how to look for the actual news and how to use it to trade.

Adam

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Adam is an experienced financial trader who writes about Forex trading, binary options, technical analysis and more.

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