Lessons › Fundamentals and news › The economic calendar
World 7 · Fundamentals and news · lesson 9 · level 3
The economic calendar
Check the calendar before you trade, so a scheduled announcement does not surprise you.
In one line
Check the calendar before you trade, so a scheduled announcement does not surprise you.
Explained simply
Imagine checking the weather forecast before a picnic, so a storm does not catch you by surprise. An economic calendar is a forecast of big announcements, with dates, times and how much they usually matter. Checking it first helps you avoid getting caught in a sudden storm.
The lesson
An economic calendar lists scheduled events, such as inflation data, jobs reports, central bank meetings and company results, usually with an impact rating and a forecast. Around high-impact events spreads can widen and prices can jump, so many traders cut size or wait. Each country's events affect different markets, so check the ones for the country and currency you trade. Always convert event times into your own time zone.
A worked example
Illustrative example: a trader in India sees US CPI on the calendar at 8:30 New York time on a July weekday. New York is then 4 hours behind UTC and India 5.5 hours ahead, so the release is at 18:00 India time (8.5 plus 4 plus 5.5 = 18). The trader plans to be flat by 17:45, a quarter of an hour earlier (18 minus 0.25 = 17.75 hours).
The same idea at four levels
- Beginner. An economic calendar lists scheduled announcements with their date, time and usual impact.
- Foundation. High-impact events include inflation, jobs reports, central bank decisions and big company results.
- Intermediate. Convert every time into your own clock: US CPI at 8:30 New York time is 18:00 India time while US daylight saving is on.
- Advanced. Check the events of every country behind what you trade, such as both currencies in a pair.
- Expert. Experts plan each week around the calendar, cut size or wait around high-impact events, and use the meeting dates that central banks publish in advance.
Mistakes to avoid
- Forgetting to convert event times into your own time zone.
- Checking only the market you trade and missing events in the country of its currency.
- Trading full size into a high-impact event.
Check yourself
What does an economic calendar list?
Scheduled economic events with times and expected impact. It shows what is coming and when.
Which is usually a high-impact event?
A central bank rate decision. Rate decisions can move many markets.
Why do many traders cut size around high-impact events?
Spreads can widen and prices can jump. Fast moves make stops less reliable.
What should you do with event times?
Convert them into your own time zone. A wrong time zone means a surprise.
US CPI comes out at 8:30 New York time in July. What time is it in India?
18:00. 8:30 plus 4 hours is 12:30 UTC, plus 5.5 hours is 18:00.
Goal of this lesson: Use an economic calendar to spot high-impact events before trading.