The economic calendar lists scheduled data releases, central bank meetings, and speeches, along with their expected market impact. For any trader who holds positions overnight or across a session, it's an essential daily reference.
Reading a Calendar Entry
Each entry typically shows the country, the event name, the scheduled time, an impact rating, the previous reading, the consensus forecast, and — once released — the actual figure.
| Field | Meaning |
|---|---|
| Previous | The last reported value for this data series |
| Forecast / Consensus | The average economist expectation |
| Actual | The real reported number once released |
| Impact | How much volatility the release is expected to generate |
Impact Ratings
Most calendars rate events as low, medium, or high impact. High-impact events — rate decisions, NFP, CPI — regularly move major pairs by significant amounts within minutes. Low-impact events are typically ignored by all but specialist traders.
If you only trade EUR/USD and USD/JPY, filter the calendar to show only USD, EUR, and JPY events. This keeps your daily view relevant and stops you from reacting to noise from currencies you don't trade.
Consensus vs. Actual: The Real Driver
Markets react to surprises, not absolute values. A weak reading that still beats a very pessimistic forecast can push a currency higher; a strong reading that misses an even stronger forecast can push it lower. Always read the actual figure against the consensus, not in isolation.
Building a Weekly Routine
- 1.At the start of each week, scan for all high-impact events on the pairs you trade.
- 2.Each morning, check for any events scheduled that day and note the exact release time.
- 3.Decide in advance whether you'll hold through, flatten, or reduce size before each high-impact release.
- 4.After release, compare actual to forecast before reacting to the immediate price move.
Calendar times are usually shown in a specific time zone, often UTC or the platform's local setting. Confirm the time zone setting before relying on it, especially around daylight saving transitions when US and European clocks shift on different dates.