Financial data sources now play a significant role in trading as well. Typically, those investors who know where to look for the relevant information and how to apply it are successful. Modern investors can actually use a wide variety of instruments while conducting fundamental analysis. There are two basic categories into which these tools fall. The first category consists of fundamental data that needs further processing and analysis, such as corporate reports, various tables including economic data, etc. The second group, on the other hand, consists only of processed data, such as analytical reports created from dispersed information sources considered to be one of the primary sources of basic analysis is the economic calendar. Even seasoned traders joke that their day doesn't start with a cup of coffee, but with a look at the economic schedule for the next session. It comes as no surprise since they use the calendar to keep track of important national and local economic developments. They may always discover the most crucial macroeconomic data in the digest, along with a list of upcoming speeches by prominent politicians or central bankers. Naturally, having access to this data does not provide traders a definitive advantage over other stock market participants. Investors can better understand market moves in the FX and equity markets as well as any alterations in other assets by using the economic calendar.
Traders deal with fundamental information that can affect stock market sentiment when examining the economic calendar. For instance, if the macroeconomic happenings of the specific areas will be of most relevance to you if you are trading the USD/CAD pair. This makes perfect sense. Important news from Canada or the United States may be published, causing volatility and affecting the asset you trade. The issue here is how to understand that the impending disclosure of a specific piece of news is actually crucial. To avoid wasting time wandering aimlessly over an unending field of economic data, traders should first learn to comprehend the economic calendar.
Great news! There are simply two requirements:
Firstly, articles can be filtered by importance using the economic calendar itself (you just need to understand how it works). Second, you should constantly focus on the most important indicators that make up the macroeconomic data when you analyze the market:
Macroeconomic information is important since it has an impact on every market segment. For instance, an unexpectedly sharp rise in inflation may cause the dollar to gain value and the bond market to decline. The news regarding rising commodity demand both nationally and locally has a significant impact on the shares of companies in the manufacturing sector.
Traders deal with fundamental information that can affect stock market sentiment when examining the economic calendar. For instance, if the macroeconomic happenings of the specific areas will be of most relevance to you if you are trading the USD/CAD pair. This makes perfect sense. Important news from Canada or the United States may be published, causing volatility and affecting the asset you trade. The issue here is how to understand that the impending disclosure of a specific piece of news is actually crucial. To avoid wasting time wandering aimlessly over an unending field of economic data, traders should first learn to comprehend the economic calendar.
Great news! There are simply two requirements:
Firstly, articles can be filtered by importance using the economic calendar itself (you just need to understand how it works). Second, you should constantly focus on the most important indicators that make up the macroeconomic data when you analyze the market:
- changes in major interest rates;
- significant drops or increases in inflation; - changes in the gross domestic product;
- PMI indexes; - levels of demand and supply;
- payroll data; - unemployment rates.
Macroeconomic information is important since it has an impact on every market segment. For instance, an unexpectedly sharp rise in inflation may cause the dollar to gain value and the bond market to decline. The news regarding rising commodity demand both nationally and locally has a significant impact on the shares of companies in the manufacturing sector.
