How to understand the economic calendar?
Let’s consider an example.
Under the number 1 is the column “Time” – this is the time when the publication of the relevant news is planned and its actual value is announced. It was at this time in the column “Fact.” (see figure 5) there are all sorts of different figures, they can be green, red or black.
Under figure 2, the column “Currency” is the national currency of a certain country, which can be affected by the release of the relevant news.
Under figure 3, the column “Important.” is the degree of importance of the relevant news. As a rule, 3 bulls is the highest degree of importance and this means that after the announcement of the actual value of the news, one should expect a sharp increase or fall in the rates of those currency pairs in the name of which there is a currency for which the actual value was declared. 2 bull – an average degree of importance, you should also expect a sharp increase or fall. 1 bull – a low degree of importance, a sharp rise or fall is not expected.
Under figure 4, the column “Event” is the name of the relevant news.
Under figure 5 the column “Fact” is indicated. – this is the actual value of the relevant news, it appears exactly at the time indicated in the “Time” column. If the value is displayed in red, it means that the value was worse than expected compared with the forecast. If the value is displayed in green, it means that the value is better than expected. If the value is displayed in black, it means that the actual value coincided with the forecast, or in the case when in the column “Forecast” was empty, i.e. the forecast was not.
Under the number 6 is the column “Forecast” – this is the predicted value of the relevant news (event).
Under the number 7 the column “Prev” is indicated. is the previous value of the relevant news (event).
The red color usually signals a drop in the exchange rate, which is indicated next to the news (event). For example, if it is USD, then after the news release, you should expect a fall in the rate of such currency pairs as USD / CAD, USD / RUR, USD / JPY, USD / CHF, etc.