Reading the Economic Calendar
The economic calendar is your roadmap to market-moving events. It tells you exactly when data releases and central bank meetings will happen—so you're never caught off guard by sudden volatility.
How to Read the Calendar
Time
When the data will be released. Make sure you know if it's your local time, GMT, or EST.
Currency
Which country/currency the data affects. USD data moves USD pairs, EUR data moves EUR pairs, etc.
Impact
How much market movement to expect. Usually shown as icons or colors (red = high, orange = medium, gray = low).
Actual / Forecast / Previous
Previous: Last period's reading. Forecast: What economists expect. Actual: The real number (shown after release).
Understanding Impact Levels
High Impact
Expect 50-200+ pip moves. Events like NFP, CPI, FOMC decisions. Be very careful or stay out.
Medium Impact
Expect 20-50 pip moves. Events like Retail Sales, PMI, Consumer Confidence.
Low Impact
Usually less than 20 pips. Minor reports that rarely move markets significantly.
The Key Concept: Surprise = Movement
Markets don't react to good or bad news—they react to unexpected news. If everyone expected NFP at 180K and it comes out at 182K, that's barely a surprise, so the market barely moves.
But if everyone expected 180K and it comes out at 250K? That's a massive surprise, and USD can rally 100+ pips in minutes.
Beginner Strategy: Stay Out During High-Impact News
Until you're more experienced, the safest approach is to avoid trading around major news:
Close open positions 15-30 minutes before high-impact news
Don't enter new trades until 30-60 minutes after the release
Wait for volatility to settle before trading again
Why avoid news? During major news releases, trading conditions become extremely difficult:
• Wider spreads: The difference between buy and sell price increases dramatically (normal 2 pips can become 10+)
• Slippage: Your order gets filled at a worse price than you requested due to rapid price movement
• Extreme volatility: Price can spike violently in both directions within seconds
Where to Find Forex News
Staying informed is crucial for fundamental analysis. Here are the best resources for forex traders:
Economic Calendars
The most popular economic calendar among retail traders. Clean interface, customizable filters, and impact ratings. Free.
Comprehensive calendar with historical data and charts for each indicator. Also has news and analysis.
Built into the charting platform, so you can see events right on your charts.
News Websites
The gold standard for financial news. Institutional traders rely on these. Some content is paywalled.
Mainstream financial news with market updates and analysis. Free and accessible.
Direct from the Source
For the most accurate information, go directly to central bank websites:
Federal Reserve: federalreserve.gov →
ECB: ecb.europa.eu →
Bank of England: bankofengland.co.uk →
Bank of Japan: boj.or.jp/en →
Beginner Tip
Start with just Forex Factory's calendar and one news site. Don't overwhelm yourself with information. As you gain experience, you can add more sources.