Economic Calendar

Currency prices react to economic data because central banks react to it. A hotter-than-expected CPI makes rate hikes more likely, which strengthens the currency, and it all reprices within seconds of the release.

Red (high) events like rate decisions, CPI and Non-Farm Payrolls regularly move prices and widen spreads. Orange (medium) events matter when they surprise. Yellow (low) events rarely move the market alone.

The market prices in the forecast before the release, so what moves price is the surprise: the gap between the actual figure and the forecast. The previous value tells you the direction the data is coming from.

Spreads widen and slippage increases around high impact releases. Many traders avoid opening positions in the minutes before a red event on a currency they hold, or reduce size going into it. Check the calendar before you enter, not after.