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How to read and trade the economic calendar

1 min read3 sections

TABLE OF CONTENTS

The economic calendar is a trader's essential tool, a scheduled list of data releases and central bank events that are likely to move the markets you trade.

Impact ratings

Calendar services rate events as high, medium or low impact. Focus on high-impact events: central bank decisions, CPI, NFP, GDP, and retail sales.

Consensus vs actual

Markets move on the DEVIATION from consensus, not the absolute number. A jobs print of 200k is bullish if consensus was 150k, and bearish if consensus was 250k.

Before and after the number

Positioning begins before the release as traders speculate. The "buy the rumour, sell the news" pattern is common, be careful holding into the print if the market has already moved.

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