Essential trading instrument
The economic calendar tool helps binary traders keep track of the possible market-moving news that is going to be announced.
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In this review we offer you a glimpse to the ways using the Forex Calendar tool could help you when trading on the Forex market.
Keeping track of important events
Keeping track of the great number of announcements that could affect the market and the time they are going to be released can prove a truly difficult task. Moreover, time for reaction is crucial when speaking about binary option trading. Traders should remember that markets are often moved just by the news of a recently coming announcement.
It is of great importance to know in advance about the coming of potential market moving announcements, as when the news is published, the right time for making profit may have already passed. It is always important to watch your schedule and use the calendar in advance in order to prepare for the right move.
As most binary option traders know, there are a number of reasons why economic indicators should draw your attention when talking about successful forex trading. You may also want to focus on the most important indicators for you, as some indicators are more influential than others. The market is not only responding to the announcement itself, but to the way news matched previous expectations.
The Gross Domestic Product is one of the major indicators of economic growth and economic condition as a whole, which must be closely followed by traders. GDP shows the overall productivity of a given economy and the indicator pays great role on the forex market. Almost all countries in the world calculate their GDP and release figures. The time of the release is known in advance.
Broadly speaking, a GDP decline shows troubles in the economy, which usually leads to a decline in the currency rate of the given economy. Rising GDP usually brings the national currency up. Still, a helpful hint for traders is not to focus on the GDP volume but on the way and speed data change in comparison to previous periods.
Of course, when trading currency pairs the GDP figures and GDP dynamics of both the countries should be known.
Consumer Price Index
The Consumer Price Index (CPI) is another major economic indicator, having a direct impact on forex markets. The CPI determines the level of inflation in an economy and measures the average prices for sellers and buyers. Rise in CPI causes inflation, which usually puts pressure on Central Banks to raise the interest rate. The result is rising currency, as traders are attracted.
On the forex market one of the most important tasks is responding faster than the rest. This makes using a forex calendar and keeping track of important events a necessity. Being a successful trader also means taking into account all kinds of economic factors and indicators.
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