There are numerous economic reports that come out every day. Some reports are important and some not so important. How do we keep track of all these reports and how do we know which ones we should pay attention to?
Many Forex brokers provide an economic calendar on their website that traders can access to help you keep track of all the reports. We looked at IBFX’s website & accessed their economic calendar which provided a listing of economic reports and the time and country where the report was initiated from. However, there are still a lot of reports to sift through. There are other sites which provide this same information but also give an expected impact or volatility – divided into high, medium, or low. One such site we looked at was from FxStreet.com. We can focus on just the reports that have a high expected impact and not worry about the low impact reports. We can focus on the reports that affect the currency that we are trading and save ourselves a lot of time.
The other thing to keep in mind is that the impact for these reports is short lived. The impact is usually only for a few hours and then it is over. The news comes out and, for 1-3 hours, there can be a lot of movement. Then, movement reverts back to normal. Typically, the impact has no long term impact on the bullish or bearish nature of the currency being traded.
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