Economic Calendar

The greater the difference between the forecast and the actual value, the more the market will react. If on the other hand, the value of the indicator corresponds with the forecast, the market reaction is likely to be insignificant.

For example, if the US unemployment rate was previously expected to be 5%, but then unexpectedly rose to 5.2%, the value of the dollar would likely fall, as a result of such negative financial news.

However, it is important to remember that trading on news involves significant risk of loss. Sometimes the foreign exchange market does not react to the news in the way that most traders expect.

An example would be if the unemployment rate increased but at the same time, the number of new jobs in the US private sector (NFP) also increased. To best understand which indicator is more crucial for traders, it is important to check the news feed, as well as understanding the Fed’s current monetary policy.

Also, don’t forget the old saying: “buy the rumours, sell the facts.” If economic forecasts are positive, the currency is likely to strengthen a few days before the news is published.

If expectations are negative, the currency may begin to lose value some days before the news release. In the FxPro News economic calendar, you can filter events by importance, currency and date.

Note: sometimes, along with the publication of ‘actual’ figures, the ‘previous’ value is revised, and the market may react to this.

Finally, don’t forget to use technical analysis in conjunction with fundamentals. If a currency is already in an uptrend and good economic news appears on the calendar, there is a much higher probability that a positive trend will continue.