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Discover key economic events
Why trade economic events?
An economic event is a public release of information, such as inflation data, employment figures or a monetary policy decision.
Major announcements can impact the entire market, while some events will have a more specific effect on individual stocks, currencies or sectors. Overall, economic events tend to create short-term volatility that traders can take advantage of.
Remember, you can keep track of upcoming events with our economic calendar.
Trade economic event volatility with FXTM
Frequently asked questions
Economic events are scheduled releases of important data and policy decisions from governments, central banks, and other major financial institutions.
Traders and investors monitor these events closely because they can significantly influence financial markets. The information released often causes price movements in assets like currencies, stocks, and commodities.
Current economic events are a common driver of market volatility and financial trends.
When economic indicators are released, they provide new information about the health of a business, country or region.
Traders and investors analyse this data to predict future economic performance and adjust their positions accordingly. A strong economic report might boost a country's currency and stock market, while a weak report could have the opposite effect.
Certain economic events are known for creating significant price movements in financial markets. Traders watch these high-impact announcements closely as they offer crucial insights into economic health and future policy direction.
These are some of the most powerful market-moving events:
- Central Bank Interest Rate Decisions: Announcements from central banks like the US Federal Reserve or the Bank of England are arguably the most influential. Their decisions on interest rates directly affect currency valuations and investor sentiment.
- Employment Data: Reports such as the US Non-Farm Payrolls (NFP) are vital economic indicators. They reflect the strength of the labour market, which has a major impact on consumer spending and overall economic growth.
- Gross Domestic Product (GDP): This figure represents the total value of all goods and services produced by a country. It is the primary gauge of economic health, with higher growth often boosting stocks and the national currency.
- Inflation Figures: Data like the Consumer Price Index (CPI) measures the rate of inflation. High inflation can prompt central banks to raise interest rates, which can cause volatility across financial markets.