Courses / Trading Fundamentals
Economic Calendar
Tracking market-moving events
The economic calendar is an essential tool listing upcoming economic data releases and events that move markets. Understanding it is crucial for every trader.
Event impact levels: 🔴 High Impact: Can move markets 50-200+ pips (NFP, CPI, FOMC, GDP) 🟡 Medium Impact: Can move markets 20-50 pips (PMI, Retail Sales) 🟢 Low Impact: Usually 5-15 pip movements
Most important events: 1. Non-Farm Payrolls (NFP) — First Friday of every month. Measures US job creation. 2. CPI (Consumer Price Index) — Measures inflation. Fed watches this closely. 3. FOMC Meetings — Fed interest rate decisions, 8 times per year. 4. GDP — Measures economic growth, quarterly.
Trading rules around news: - Widen stops or close positions 15 minutes before high-impact events - Wait for the volatility to settle (5-15 min after) before entering - Never trade without checking the calendar first
Pro tip: Use ScaleEdge's Calendar page to see upcoming events in real-time.
Pro tip: The market often "prices in" expected data — the surprise factor is what moves price.
Common mistake: Opening trades right before major economic releases. Better: Either close positions before news or widen your stops significantly.
Common mistake: Ignoring the economic calendar entirely. Better: Check it every morning before you start trading. One unexpected event can wipe out your gains..
Key takeaways
- Always check the economic calendar before trading
- NFP, CPI, FOMC are the biggest market movers
- High-impact events can move markets 50-200+ pips
- Either widen stops or sit out during major releases
Quiz
- Non-Farm Payrolls is released: Answer: First Friday of each month. NFP is released on the first Friday of every month and is one of the most impactful events.
- Before a high-impact news event, you should: Answer: Widen stops or close positions. High-impact news causes volatility spikes that can hit tight stops. Either widen or exit.
Educational content, not financial advice.