How to Read an Economic Calendar

What It Shows

An economic calendar displays upcoming economic events in chronological order. For each event, you typically see: the date and time, the country, the event name (e.g., 'UK CPI'), the impact level (low, medium, high), the previous reading, the consensus forecast, and — once released — the actual figure.

Most trading platforms include a built-in calendar. You can also use free online calendars from major financial data providers.

Impact Ratings

Events are typically rated as low, medium, or high impact. High-impact events include NFP, CPI, GDP, central bank decisions, and PMI readings. These reliably move markets and widen spreads. Medium-impact events (retail sales, housing data, trade balance) can move markets but less predictably. Low-impact events rarely cause significant price action.

Focus your attention on high-impact events. Know when they're scheduled, what the consensus expects, and how the relevant market typically reacts.

Building a Daily Routine

Every trading morning, check the calendar for the day ahead. Ask three questions:

• Are there any high-impact releases today? If so, when?
• Which instruments will be affected?
• Am I holding positions that could be impacted?

If you're holding a GBP/USD position and UK CPI is due at 7am, you need a plan — either close before the release, widen your stop, or accept the risk. Making this decision in advance is vastly better than being caught off guard.

Time Zones Matter

Economic calendars default to different time zones depending on the provider. Most UK traders work in GMT/BST. US data releases typically occur at 1:30pm or 3pm GMT. European data is usually between 7am-10am GMT. Asian data releases happen overnight for UK-based traders.

Set your calendar to your local time zone and build this check into your pre-market routine.