Economic Calendar: Top Market Events You Should Watch Out for

Markets tend to get especially volatile whenever there’s an economic report or some data dump that takes investors by surprise. That’s why we’re spinning up this Idea where we highlight all the major market-moving events you should watch out for when you do your trading.

Today, we look at the Economic Calendar.

🏦 Central Bank Meetings and Announcements

Federal Reserve (Fed) Meetings

The US Federal Reserve holds Federal Open Market Committee (FOMC) meetings roughly every six weeks,or (eight times a year), to talk about monetary policy, including interest rates. Setting interest rates is arguably the most significant event with long-lasting consequences for markets.

Each of these meeting takes two days and wraps up with a speech by the gentleman who moves markets with a simple “Good afternoon” — Fed boss Jay Powell.

European Central Bank (ECB) Meetings

Similar to the Fed, the ECB holds regular meetings to decide on monetary policy and borrowing costs for the Eurozone.

ECB officials’ decisions sway financial markets, especially those based in the old continent. Indexes such as the Stoxx 600 Europe (ticker: SXXP) and the European currency tend to fluctuate wildly during ECB events.

Bank of England (BoE) Meetings

The BoE's Monetary Policy Committee (MPC) frequently meets to discuss and set interest rates and other monetary matters.

Decisions made by BoE policymakers mainly affect the UK corner of the financial markets. That means elevated volatility in the British pound sterling and the broad-based UK index, the FTSE 100, among other UK-based trading instruments.

Bank of Japan (BoJ) Meetings

The BoJ holds policy meetings to decide on interest rates and monetary stimulus, among other central-bank topics.

Until recently, the Japanese central bank was the only one to sport a negative interest rate regime.

📝 Economic Data Releases

Nonfarm Payrolls

In the US, the Bureau of Labor Statistics releases the Employment Situation Summary on the first Friday of every month. The data package includes the non-farm payroll print, which tracks how many new hires joined the workforce, the unemployment rate, and average hourly earnings.

Consumer Price Index (CPI)

Monthly CPI measures the rate of inflation at the consumer level. The reading is closely monitored by the Fed in order to gauge the temperature of the economy. A reading too hot indicates an expanding economy, and vice versa.

Producer Price Index (PPI)

Similar to CPI, PPI measures inflation at the wholesale level and can provide signals about inflation trends.

Gross Domestic Product (GDP)

Quarterly GDP churns out a comprehensive measure of a country's economic activity and growth.

Retail Sales

Monthly retail sales indicate consumer spending patterns, which are a critical component of economic activity. The data shows whether consumers pulled back from spending or splurged like there’s no tomorrow.

Purchasing Managers' Index (PMI)

PMI reports for manufacturing and services sectors lay out insights into business activity and economic health.

🏢 Corporate Earnings Reports

Publicly traded companies around the world release earnings reports every quarter. The hottest ones are America’s corporate giants, such as tech stocks, banking stocks, and more.

The quarterly earnings figures include financial performance for the most recent three months and forward-looking guidance, which comprises earnings and revenue expectations.

🌐 Geopolitical Events

Political developments, such as Presidential elections, and geopolitical tensions can have immediate and significant impacts on financial markets. These events are less predictable but are closely monitored by market participants and can quickly fuel volatility across asset classes, prompting investors to shuffle their portfolio holdings.

Final Considerations

Pay attention to these reports, events, and economic data and you’ll get to understand what moves markets. Anytime you witness a sharp reaction in gold (XAUUSD) or a quick reversal in the US dollar (DXY), it’s likely that the underlying factor is an economic report you didn’t know about.

If you do track them — which one is your favorite market report or economic news release? Let us know in the comments below!
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