How to Use Economic Calendars and Plan Your Trading

Discover how to increase your trading profits by noting key events in your economic calendar. Plus, earn Forex rebates with STIC Cashback.

The economic calendar is an extremely useful tool that every trader, once they have acquired a decent level of experience, should use.

It is a chronological list where you can note all the publications, announcements and significant macroeconomic events that can have a material influence on the performance of securities and the relationships between currency pairs in the Forex markets.

Intermediate traders can gain considerable advantages from this habit: knowing how to predict and interpret the consequences of a central bank announcement, or periodic data related to a country’s GDP, inflation, or employment, means being able to open highly profitable Forex trading positions. This allows traders to anticipate trends and exploit market volatility to their advantage.

In this article, we’ll explain how to interpret the main economic indicators, plan operations around scheduled events, and manage risk during volatility peaks, with a particular focus on the markets of rapidly growing economies like India, Japan, and Nigeria. Additionally, we’ll provide some useful tips on trading with cashback and highlight interesting prize initiatives, such as the “FOMC” contest by STIC Cashback.

What is an Economic Calendar and How Does it Work?

To keep track of the most important macroeconomic publications, it is good practice to note each event and its key aspects. An economic calendar can be conveniently created on your smartphone, in an Excel file on your PC, or, if you prefer, in a paper diary.

A proper method of compiling an economic calendar involves dividing the information related to each event into various fields. Start with the name of the event (for example, an interest rate decision by the FED) and the currency involved.

Then, as a reminder, highlight the importance of the event (low, medium, or high), based on the degree of impact it is expected to have on the markets.

Finally, we recommend noting the expected value of the asset (currency or other asset), derived from analysts’ estimates, alongside its previous actual value. In other words, predictive analysis should be paired with historical analysis to provide a complete picture of the data, keeping it readily accessible and allowing for adjustments once the relevant trading positions are opened.

Interpreting Economic Indicators in an Advanced Trading Strategy

What are the main economic indicators featured in calendar announcements or events that deserve your attention? First and foremost, GDP growth rates, which always offer a vital indication of a country’s economic health. These can be observed either as quarterly variations or as annual projections.

Next, the interpretation of common economic indicators should focus on the Consumer Price Index (CPI), which measures inflation. Analysis of widespread price increases can also centre on the Core CPI, inflation excluding the food and energy sectors. These sectors, being prone to greater volatility, can produce data that muddies the overall analysis, making it less clear and reliable.

Other key economic indicators to interpret include the  Nonfarm Payrolls, which represent a country’s employment rate, excluding the agricultural sector. For a thorough Forex predictive analysis, each of these data points should be cross-referenced with other market indicators from the same country—such as inflation or the Industrial Production Index (IIP), as well as similar data from other countries (e.g., employment in the USA alongside India’s IIP or inflation in Nigeria).

Similarly, for every event logged in the economic calendar, consider the expected volatility profiles, depending on whether significant or modest fluctuations between currency pairs are anticipated. 

Special attention should be focussed on data from fast-growing economies like Japan, India and Nigeria, especially the decisions made during meetings of the central banks regulating monetary policy in these countries, such as the Bank of Japan (BoJ), the Reserve Bank of India (RBI), and the Central Bank of Nigeria (CBN).

Planning Trading Operations with an Economic Calendar

An advanced trading strategy incorporating an economic calendar naturally guides the intermediate trader in planning operations based on scheduled events.

For each event (publications, announcements, decisions, etc.), begin with a pre-event analysis to assess market expectations, comparing them with current quotations and the effects of similar past publications.

Based on this analysis, determine an entry strategy. One option is the  “consensus fade” which involves betting against initial peaks when you believe the market consensus is mistaken and likely to wane. 

Alternatively, you can exploit breakouts when data significantly exceeds estimates—going long if prices stay low longer than expected with upward forecasts, or shorting immediately if values trend downward.

Additionally, using straddle orders (or pending orders), you can open multiple positions in opposite directions to be prepared to seize upon significant post-publication trends, regardless of their direction.

Special care should be taken with time zones, particularly in light of the focus on emerging economies. To act on Forex markets by leveraging events affecting foreign markets, it’s crucial to coordinate trading operations with the release times of information, adapting them to Rome’s European time zone (GMT+1, or GMT+2 during daylight saving time). Keep a close eye on the time zones of Japan, India, and Nigeria, specifically:

• Tokyo (GMT+9)
• Mumbai (GMT+5:30)
• Lagos (GMT+1)

This approach enables effective planning of operations following BoJ announcements (increasing positions if indications are confirmed), RBI decisions on liquidity or interest rates, or currency pair trades after announcements from the Nigerian CBN.

How to Integrate the Economic Calendar Strategy with Forex Rebates

Clearly, an advanced trading strategy using an economic calendar can lead to opening numerous positions on the Forex markets. 

This is where trading with cashback becomes an excellent solution: STIC Cashback’s Forex rebates grow with the volume of operations conducted, providing an additional income stream alongside profits from successfully closed trades.

What’s more, STIC Cashback offers opportunities to participate in periodic prize initiatives, such as the recently concluded FOMC promo. This engaging contest required participants to guess the currency pair with the highest growth percentage following the Federal Open Market Committee (FOMC) interest rate announcement on 18 May 2025.

Winners enjoyed enticing prizes, including a $100 bonus draw for all participants who correctly identified the winning pair, EUR/JPY, which, for the record, achieved a total return of +0.9989% during the period.

In conclusion, you are now equipped to integrate your economic calendar-based trading strategies with STIC Cashback rebate, allowing you to manage risk more effectively and trade smarter and more profitably on the Forex markets. Sign up today!