As a good currency exchange trader, a Forex calendar should be an essential part of your daily trading routine. Even as a technical analysis trader, as most Forex traders are, you should not ignore the economic news. In fact, looking for the upcoming scheduled news on a Forex calendar should always be the very first thing you do before deciding on entering a trade. Being aware of the timing of high impact news before it happens enables you to minimize your risk.

During these volatile market conditions, you may decide to stay on the sideline or take advantage of them using fundamental analysis trading strategies. Trading Forex from the perspective of fundamental analysis is not a popular choice, but if you combine it with your technical analysis, you could have a huge advantage in the Forex market.

Fundamental analysis mainly considers the economic and political changes in the Forex market. It can also give you a better understanding about important economic reports and indicators. Unemployment rates, interest rates, PMIs, and gross domestic products are only a few of the most important economic indicators in the Forex market. Once you understand how these reports can affect a particular currency, you can create a trading strategy to take advantage of the volatility in the market.

Know When The Forex Market Will Move By Using An Economic Forex Calendar

Know When The Forex Market Will Move By Using An Economic Forex Calendar

One of the most popular ways to trade the news is to trade the initial spike that follows a high impact news report; especially if the actual release number differs greatly from the forecast number.

For example, if we are expecting the US Non-Farm payroll news to be released at a forecast of 300K. If the actual release number comes out better than expected at 370K and above, we would jump in on a trade to buy the US dollar against other currency pairs.

Know When The Forex Market Will Move By Using An Economic Forex Calendar

Know When The Forex Market Will Move By Using An Economic Forex Calendar

However, if the actual release number comes out worse than expected at 230K and below, we would enter into a trade to sell the US dollar. In this example, you will notice that we are looking for a 70K of deviation. According to historical data from previous NFP releases, this is the minimum difference required for the market to move 50 pips or more for at least 75 percent of the time.

There are many well-known Forex websites and blogs that provide free economic calendars that are updated with the latest economic news and figures as soon they are announced.

Know When The Forex Market Will Move By Using An Economic Forex Calendar

Know When The Forex Market Will Move By Using An Economic Forex Calendar

One excellent source for Forex fundamental analysis is CurrencyNewsTrading.com that offers a great Forex calendar that displays the scheduled news events in a weekly basis. Most online Forex calendars color-code each news event by its potential impact, but the CNT’s Forex calendar displays only the high impact news that historically are the most tradable. It also shows the tradable deviation for each event, along with the potential pips movement range, related market headlines, and the different currency charts displaying the market movement as a result of each particular news report.

By following a Forex calendar, you will know in advance the time of news reports that are likely to influence a particular currency, and it should be an essential tool in your daily trading so you can manage your risk.

You can also take advantage of the market volatility immediately after these news reports by using fundamental analysis strategies. To get started, visit CurrencyNewsTrading.com to learn about news trading and to get the latest tools to help you make improved decisions in your Forex trading and hence make you more profitable.

Know When The Forex Market Will Move By Using An Economic Forex Calendar

Know When The Forex Market Will Move By Using An Economic Forex Calendar