Why the US Economic Calendar is Your Trading Secret Weapon
Why the US Economic Calendar is Your Trading Secret Weapon
Most retail forex traders focus only on charts and technical analysis. You're trying to find a high-probability trade setup, but sometimes the market just seems to ignore your lines.
Complication: But big events like the US inflation report or a Fed rate decision can crash your analysis instantly. News creates sudden spikes and reversals. Your perfect technical setup gets wiped out in seconds, costing you money.
Question: So, how can you trade confidently and avoid losing your account to unexpected market jolts? How do you protect your trades from high-impact news?
You must use the US Economic Calendar. It's an essential tool. The US Dollar (USD) is part of almost 90% of all forex trades. That means US economic news moves the entire market.
A strong US jobs report will likely boost the USD, pushing pairs like EUR/USD lower. Check the calendar before you enter a trade. Avoid trading minutes before a "High-Impact" event.
This simple habit protects your capital. It helps you manage risk better.
Quick Q&A for the Blog
Q: What is the most important US news event to watch? A: Interest rate decisions from the Federal Reserve (FOMC). These change the cost of holding a currency. They create huge volatility.
Q: What does "Consensus" mean on the calendar? A: That's the average forecast from top analysts. If the "Actual" number is much better than the "Consensus," expect a strong move in the US Dollar.
Q: Should I trade during a "High-Impact" news release? A: New traders should not. The spreads widen and price action is erratic. It's often better to wait 15 to 30 minutes until the dust settles.
