Most forex traders use the forex calendar and develop their trading patterns with its easy usability. Events on the calendar are given a “low,” “medium,” or “high” grade based on the expected degree of influence they will have on the market. No matter what period you trade on, it would help if you made it a habit to check the forthcoming events on the calendar every day.
Eventually, the announcement revealed voluntary cuts by selected members led by Saudi Arabia resulting in roughly 2.2 million bpd. The inability to unanimously agree has brought into question the organizations efficacy and cohesion. The alliance has subsequently revealed that Brazil (South America’s largest producer) will join OPEC in January 2024 although no further details were given. Get your hands on the CRUDE OIL Q4 outlook today for exclusive insights into key market catalysts that should be on every trader’s radar.
Chicago business activity index moves into expansion territory for first time in more than a year
Our economic calendar showcases relevant events to help you trade these markets too. You can also dig deeper into global financial trends and events with our latest news and analysis articles. Because of the market’s heightened volatility, it is essential to keep in mind that trading around news events might result in significant slippage in a position.
- Because of the market’s heightened volatility, it is essential to keep in mind that trading around news events might result in significant slippage in a position.
- These indicators typically change ahead of any gigantic or significant economic adjustment event.
- It would help you know when to enter and exit the market to feel the most advantageous and control your losses.
- WTI crude oil and Brent crude oil prices faded after much anticipation created by OPEC+ postponing their meeting around production cuts due to disagreements with certain African nations.
- The alliance has subsequently revealed that Brazil (South America’s largest producer) will join OPEC in January 2024 although no further details were given.
- The option to have an audible alert whenever a new release is made is available.
Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors. We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading. Information presented by DailyFX Limited should be construed as market commentary, merely observing economical, political and market conditions.
— Written by Richard Snow for DailyFX.com
An economy’s total or overall economy is impacted by various events that tend to change rapidly. Online forex calendars are quickly updated to reflect such changes on a real-time basis, which eventually helps traders decide their trades. Money markets have since priced in 115bps of cumulative rate cuts by the Fed by December 2024. The focal point for the week has always been the upcoming core PCE price index (see economic calendar below) which is the Fed’s preferred measure of inflation. Should actual data fall in line with forecasts, the pound may well find additional support. Jobless claims will also be scrutinized to see whether or not recent labor market weakness continues or was just a blip in what has been a robust part of the US economy.
As shown in the filters, there is the importance tab where you can change what events you would like to focus on. Both Brent crude and WTI daily charts below exhibit similar chart patterns in the form of a bear flag formation (black). Bears closed the prior week around flag support threatening a breakout lower. The weekly candle close further supports a bearish bias due to its upper long wick that could quickly bring into attention subsequent support zones. If you’re puzzled by trading losses, why not take a step in the right direction? Download our guide, “Traits of Successful Traders,” and gain valuable insights to steer clear of common pitfalls that can lead to costly errors.
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If any, you must synchronize your trading pattern with the economic moves or events and trade that information at the right time. The economic calendar is just another trigger in the overall trader’s strategy. Usually, traders develop a system using a combination of economic events and technical analysis.
CRUDE OIL FUNDAMENTAL BACKDROP
IG Client Sentiment Data (IGCS) shows retail traders are currently net SHORT on GBP/USD with 58% of traders holding long positions (as of this writing). The Euro has come under pressure and has depreciated against a number of major FX currencies. The European outlook is fraught with difficulties as the global growth slowdown has had a major impact across the bloc, including Germany, Europe’s largest economy. Hawkish comments endorsing higher interest rates for longer are likely to exert upward pressure on U.S. yields, creating the right conditions for the U.S. dollar to prolong its nascent rebound. On the flip side, a lack of pushback on dovish market pricing ( many rate cuts for 2024 already discounted) could drag yields, weighing on the greenback.
The graph below reveals the sideways movement in price pressures which are yet to show a concerted move to the downside. Progress in this measure could contribute towards another leg lower in the dollar as markets look ahead to next year when at least three 25 basis point hikes are priced in. There are three methods through which you can trade the economic calendar. dailyfx economic calendar Generally, a country with a significant trade deficit is said to have high volumes of imports of international goods or services. As a result, such a nation would have to sell its currency to purchase that other nation’s currency in the global market to balance the trade deficit. Therefore, it would impact the overall economy of that nation negatively.
The pair may trade in a choppier fashion this week as US jobs data trickles in ahead of the major NFP print on Friday. The RSI suggests that further bearish momentum may have further to run as the current downward move is far from oversold territory. However, a close below the 200 SMA with considerable momentum is favourable from a bearish perspective given the potential for the 200 SMA to halt price declines.
As a forex trader, you should keep yourself aware of economic events by eyeing the forex calendar. On that basis, you can take reasonable and thoughtful trades on your preferred currencies. Keeping yourself updated with these data points can easily ace the trading and profit based on the forex calendar information. The forex calendar also helps traders know how much volatility would be triggered by this prospect’s event or report release.
This is really interesting as it comes at a time when US Crude Oil production set a record for second successive month adding a challenge to OPEC+ as they look to keep prices under control. OPEC+ are looking to add more member states which in turn will allow them greater control over the price of Oil moving forward and limit the impact of what is known as ‘Free Riders’. Interesting times ahead just as the possibility of uncertainty in the Middle East rages on. All the mentioned events are the drivers of volatility and significantly impact the forex market.
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