Economic Calendar Data
What is an economic calendar? An economic calendar is an important tool used by traders and investors to track market-moving occurrences, including economic reports and central bank interventions. Market-moving occurrences, which are usually released or announced in a news release, have a very high probability of affecting the underlying financial markets drastically. Therefore, traders and investors who pay close attention to economic calendar releases need to make quick adjustments, especially when they come from a long way out.
Economic calendar reports are released by central banks on a monthly, quarterly or annual basis. They are designed to provide traders and investors with detailed information about economic conditions across the world. The information includes both indicators of economic activity (good) and measures of market activity (bad), both of which can be used to analyze market conditions. Indicators of economic activity are released along with data on interest rates, unemployment, consumer spending, gross domestic product, inflation, balance of payments and trade balance. Economic reports are released by government bodies such as the Federal Reserve, European Central Bank, and the Bank of America.
Economic reports also cover three main topics. They include official export and import statistics, trade balances, and balance of payment positions. Official export and import statistics represent the performance of the export sector of a country against that of its imports. This can be an important measure for determining the performance of export-driven sectors. The trade balance is the difference between the value of exports and imports.
The central bank should regularly examine the current trade balance. For instance, if a new report indicates that export growth was stronger than expected in the third quarter of a given year, the bank should revise its forecast based on the new data. Similarly, trade balances can be revised downward if the results of any reports are worse than initially projected. By closely monitoring these components, the central bank can detect possible deviations from the stated goals of economic policy. The economic calendar provides indicators and signals to indicate when revisions should be made to policy settings. These signal adjustments are applied to the variables affecting the trade balance, inflation, and interest rates.
Indicators that measure trade balance can be used to evaluate a country’s international trade performance. The indicators show the balances for exports and imports. These balances give the quarterly progress report on trade flows. The indicators are updated by monthly surveys of imports and exports. These surveys allow traders and other market participants to evaluate changes in the balance of payment.
The indicators are important for assessing the performance of a country’s economy. The direction of the trade balance can provide an early indication of the potential direction of domestic growth. As the indicators improve, the trade balance can become more reliable as a guide to domestic economic performance. For instance, a country with a positive trade balance has the potential to grow. A negative balance gives the impression that the economy is underperforming.
Economic calendars can also be used to indicate changes in interest rates. Interest rates affect investment and financing rates and help determine the amount of money the Central Bank can borrow to finance various activities. It helps determine the amount of financing needed for various projects. Interest rate indicators are available for many time periods in the calendar.
The indicators reflected in the economic calendar are available for trade and Purchasing Managers Indicators (PMI). The PMI indicates the activity of business establishments that have recently expanded or contracted. Other indicators that are available from the economic calendar include Consumer Price Index (CPI), Gross Domestic Product (GDP), and Producer Price Index (PPI). Economic indicators are usually released monthly. However, a release is usually published quarterly to provide more timely information.