A reliable Forex Economic Calendar is one of the most essential tools for traders. This tool keeps track of upcoming economic data that can affect currency pairs and the overall economy. Governments and other sectors regularly report on economic growth and employment levels. The release of these data can cause big price moves and wide price gaps. If the gap is greater than 50 pips, it may signal a lack of liquidity in the market.
Traders also use an economic calendar to monitor important global events. The calendar contains a list of hundreds of important events and reports, and projections for future events. Many traders use this information to determine which times to enter and exit positions. They often time positions to coincide with economic announcements and events that have heavy trading volume.
