CFDs are complex financial instruments and carry a high level of risk due to leverage. A significant proportion of retail investors incur losses when trading leveraged products such as CFDs. You should carefully consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your capital.
The economic calendar is a tool that lists scheduled financial events that can move the markets. It includes macroeconomic data releases, central bank decisions, corporate earnings reports, and other relevant events. Every data-driven trader consults it before planning their trading day.
This tool organizes events by date, time, country, and expected impact. Each entry shows the previous data point, the consensus forecast, and—after release—the actual result. The difference between the forecast and the actual result is what drives market movement.
Not all data carries the same weight. Some generate immediate volatility, while others go almost unnoticed.
Interest rate decisions (Fed, ECB), inflation (CPI), employment (U.S. nonfarm payrolls), and GDP significantly move currencies, bonds, and stocks. These events are marked with a high-impact indicator.
Consumer confidence indices, retail sales, or factory orders generate minor reactions. They’re useful for confirming trends but rarely trigger sharp movements on their own.
The economic calendar is consulted as part of your daily routine. The process is straightforward.
Review the day’s events. Filter by country and impact level based on the assets you trade.
Compare the forecast with the previous data point. A large deviation between the two suggests greater potential for volatility.
Decide whether to trade or wait. Before a high-impact data release, many traders close positions or widen their stops.
Analyze the result after the release. Compare the actual data to the forecast. The surprise (positive or negative) is what drives price movements.
The key isn’t the data itself, but how much it deviates from market expectations.
The market expects the Fed to keep interest rates unchanged. The consensus is “no change.” If the Fed unexpectedly raises rates, the dollar strengthens immediately, stocks fall, and bonds lose value. A trader who checked the calendar knew the event was scheduled and adjusted their exposure before the announcement.
Many beginners ignore this resource or use it incorrectly. These common pitfalls include:
Trading right before a high-impact data release without protection.
Ignoring the forecast and reacting only to the published number.
Failing to filter events by relevance to your assets.
Checking the economic calendar every day offers concrete advantages.
Avoiding surprises from unexpected volatility.
Planning entries and exits around key events.
Understanding why the market moved after a data release.
The economic calendar lists scheduled events that can move the markets. Checking it daily allows you to anticipate volatility, protect positions, and make better-informed decisions. The difference between the forecast and the actual result is the data point that triggers the market movement.