Blog / Fundamental
How to Read an Economic Calendar: Impact, Forecast, Previous and Actual
Learn what each column of an economic calendar means, which events matter most and how to plan your trading week around them.
The columns
Time is when the data is released (check your time zone). Currency shows which currency it affects. Impact is the expected volatility: low, medium or high. Forecast is the consensus estimate, Previous is the last reading and Actual appears at release.
Events that matter most
Interest rate decisions, central bank statements and press conferences, inflation (CPI), jobs reports (NFP in the US), GDP and retail sales. Speeches by central bank chairs can move markets even without numbers.
Planning your week
On Sunday, list the high-impact events for the currencies you trade and note the times. Decide in advance whether you will trade, reduce size or stay out around each one. Avoid opening new positions in the minutes before a major release.
Reading the result
An actual number better than forecast is usually positive for that currency; worse is negative, with exceptions such as unemployment where lower is better. Revisions to the previous number can matter as much as the headline.
A weekly checklist
On Sunday: list high-impact events for your currencies, note times in your own time zone, mark days with several events and decide in advance your rule for each (trade, reduce size or stay out).
On the day: re-check for schedule changes and look at forecast and previous values so that the actual number means something when it appears.
Beyond the headline
Look at revisions to the previous figure, the components of the report (for example wages inside the jobs report) and the market reaction in the first minutes. Sometimes the headline beats the forecast but the details are weak, and price reverses. The calendar tells you when to pay attention; the price tells you what the market thinks.
Key takeaways
- Check times in your own zone.
- Actual vs forecast drives the move.
- High-impact events deserve a plan.
- Revisions matter too.
Related
Educational content, not financial advice.