A calendar is an important tool in the financial markets, which includes the forex market, digital currencies, and stocks and indices. That tool is a timetable. In this table, a series of important global events that affect the exchange rate of countries are stated. Investors know that a chart is very important. Because it shows how future news will affect the value of currencies and stocks, for instance:
The range of information available in the forex
• We are aware calendar contains monthly, quarterly (quarterly), and annual reports on countries’ financial situation, gross domestic product (GDP), and their central bank interest rates.
• Those detail allows traders to plan their future trades.
• Financial markets experience certain changes on certain days of the year and these changes also affect the price of currencies. For example, the month of January and the night of Halloween. They are among the effects that strongly affect the exchange rates and cause changes in the prices. It may move the trend of predictions in the opposite direction.
• On the whole, reports in the economic calendar do not only include daily events but also provide the fluctuation level of events. Here, the level of volatility is related to the possible severity of the impact of the news on the market. In the economic chart, there is usually an indicator that has three levels to express possible volatility. Red, orange, yellow, and gray are the 4 main colors that indicate the importance of news. If the news has a great impact on the market, it is a three-level event. (i.e. red color)
• Finally, important data shown in red is very important for daily or weekly traders.