Economic Calendar

The Tmercados Economic Calendar lists recurring financial events that affect financial markets. Skilled traders anticipate these events and plan their trades accordingly.

The Tmercados Economic Calendar lists recurring financial events that affect financial markets. Skilled traders anticipate these events and plan their trades accordingly. Each of these events can influence the value of an instrument to an extent indicated by an event’s colour-scale classification.

Open an account and start trading based on upcoming economic events!

What is an Economic Event?

The events and indicators on the Tmercados economic calendar are pre-scheduled and include statements made by national agencies and other leading players in the financial arena, such as central banks, the International Monetary Fund (IMF) and others. A declaration stating the monthly unemployment rate of a country, for example, can cause fluctuations in the local exchange rates.

Central banks and other major players tend to prefer a calm and stable market, which is how most instruments usually act. However, events can sometimes create major waves that massively impact financial markets.

The Importance of an Economic Calendar

When using the economic calendar, traders gain a better understanding of market changes, why they happen and their scope; they examine how past events influenced the markets and to what extent.

Why use an economic calendar?

Track occurrences of market-moving events and measure their impact
Anticipate major market events and utilise them as trading opportunities
Stay abreast of crucial market movements that can affect your open trades
Follow key economic and non-economic indicators
Monitor events that influence the movements of a particular asset

Fundamental Analysis for Economic Calendar

Experienced traders know how to plan and perform their trades according to the calendar, both before and following the events. Using the economic calendar is part of fundamental analysis, trying to predict which way the market will go in order to make informed and wise trades.

Before a calendar event takes place, the trader will study the general state of the economy, review similar past events, and more. Based on these factors and others, he will try to speculate the effects the event might have on various instruments. This is the basis of fundamental analysis – predicting market trends based on the current financial situation and the economic environment.

Some traders, usually more experienced ones, will open positions before the financial event occurs. For example, if such a trader speculates that the announcement will cause a rise in the instrument’s value, he will open a buy position prior to the event, in order to sell it once the price goes up and take profit. Other traders, however, will delay their trades until after the announcement and “ride the trend” that develops.

An Example

On the first Friday of every month, the U.S. Bureau of Labour Statistics releases the overall number of employees in the U.S., excluding some fields, such as government workers, agriculture and non-profits. This report is called the Non-Farm Payroll (the NFP). It reflects approximately 80% of the U.S. working force. Financial news desks and companies post forecasts relating to this announcement.

The anticipation of the announcement is what triggers traders’ attention while they try to predict and plan trades. Once announced, traders compare the report to their speculations before the release. If the rate is better than forecast, relevant markets will experience a rise. Conversely, a lower NFP, which indicates a higher unemployed number will cause most markets to decline. The Non-Farm Payroll can affect other data, such as consumer consumption rates, stocks and more. That is why the NFP is considered an event with major financial ramifications.

It is important to remember that any trends that occur after the event are also influenced by many other factors. There is no certainty that the market will react the exact same way every time, since there are many other elements that affect it.

Tmercadoss Economic Calendar

It would be wise for all traders, regardless of the instrument of their choice, to follow the Economic Calendar closely. As seen in the example given, any event might affect several instruments. Using the calendar as a guide can help you better understand the markets. With time and practice, it can also improve your fundamental analysis and predictions based on upcoming financial events.

It’s time to open an account and start trading based on upcoming economic events!