The answer to the question what is economic calendar in forex market is a simple one. The economic calendar is a tool of fundamental analysis used by foreign exchange traders so that they can take up a position from where they can take advantage of future movements in currency. The economic calendar lets traders plan for currency fluctuations and enables them to prepare when they wish to enter and exit trades. If you are interested in the forex market then you will know that economic and political announcements can alter the direction of a pair of currencies in a matter of seconds, rendering meaningless previously true fundamentals.
It is fortunate for traders that the events in the economic calendar are known well in advance. A meeting of the European Central Bank for the purpose of discussing interest rates, for example, will have been scheduled well in advance, giving traders time to do research into what is likely to happen and what the effect will be on currency prices.
Typically brokers publish a live on-line economic calendar that updates immediately on receipt of economic or political announcements. Such an economic calendar will usually have six columns, telling you time that the new data will be released, the event that will happen, what the actual published data is, a consensus of the numbers, the previously published numbers and the impact that the data will have on the forex market.
If you are a forex trader then you will spend a lot of time analysing future events so as to try and predict what the next announcement will be. An average of these analyses makes up the consensus column mentioned above. As a trader you may well use the consensus to decided on how you trade. If the prediction has been one hundred percent accurate, then the market will not respond.
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