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What is the Economic Calendar and What is it For?
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stephenadebiyi |
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What is the Economic Calendar and What is it For?
Why is Economic Data Important for Traders?
Certain economic events and data will affect different markets and in different ways. Understanding the impact of this financial news can help a trader to definitely improve their trading results using fundamental analysis and better prepare them when they develop their trading strategies for independent financial success.
One example of how financial data can affect a market would be the release of GDP numbers from a country. For instance, when Canadian GDP numbers were better than expected, the Canadian dollar performed better in Forex markets against other currencies.
Another example of this would be profitability announcements from major oil companies, which are also in the Economic Calendar. In this case, good or bad news from oil majors can shift trading sentiment for Brent Oil. Secondary markets to oil can also be affected like any USD currency pair.
One last great example would be any economic news that indicates a coming recession for the U.S., major European country, or globally. In the event of this type of news, investors often will move their capital to Gold or even Bitcoin to help protect it from currency exchange losses. Recently, when the U.S. raised tariffs on China and the Yuan dropped in value, the price of Gold rose on the news.
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