Economic Calendar
In today’s markets one must understand the importance of economic indicators.
On a regular basis each country publishes different results, gauging the strength
of various parts of the economy. These indicators tell traders whether the
economy is continuing to grow at a steady pace, or if there is a current
slowdown due to an economic contraction. Understanding the value of these
results normally indicates to traders whether monetary measures need to be
taken or not, in order to control the economy.
Monetary Policy- To keep economic growth under control, preventing inflation
or hyperinflation, each central bank uses numerous tools to insure gradual
growth or to stimulate it after economic slowdowns. One of the most common
tools used in today’s economic cycles are interest rates.
During economic growth, increasing interest rates are used to offer consumers
an alternative to their money. This attracts them to invest in higher yielding
programs, therefore allowing central banks to control consumer consumption.
A Decrease of interest rates is often used to encourage consumption spending,
making returns on savings less attractive.
One has to remember that by nature traders will always look for higher returns
on their money, encouraging investors/traders to move their money from
currency to currency according to interest rates differentials.
In order to help first time traders, our web site contains all the major data
needed to understand this field. By taking a glance at the economic calendar
once a week, a trader can prepare her/his trades accordingly, by knowing what
results could affect her/his trade.
With the click of a mouse a trader can know exactly what the indicator
measures, including its importance. The higher the indicator is ranked the more
it will have an effect on the intraday trading session.
