What Does the Economic Calendar Indicate?

The economic calendar refers to the schedule of official business of the European Union. It can be seen as a business timetable, showing which days are most important for a specific group of countries. Also known as the Economic Watch List, it has been described as “a time-share system for forecasting economic activity and the contributions of major actors in the international business community”.

Economic calendar

In the economic calendar, the main economic countries are arranged in six equal groups: Central, Eastern, Northern, Southern, Western and Economic Unit. Central and Eastern Europe, along with the Soviet Union and the former Yugoslavia to form the Central European group, comprising Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom. The Western European group consists of Austria, Belgium, Cyprus, Denmark, Finland, France, Ireland, Italy, Luxembourg, the Netherlands, Portugal, the United Kingdom, Romania, and Sweden. The Economic Unit, which consists of all the countries that do not fall within the Central or Eastern European group, are arranged in eight equal groups: Iceland, Norway, Israel, Korea, Monaco, Switzerland, Japan, New Zealand, Singapore, Taiwan, and Taiwan.

The twelve months in the economic calendar of the European Union follow a fixed pattern of dates. First comes December, followed by January, February, March, April, May, June, July, August, September, October, November, and December. These are all the months that are usually deemed as the most important in terms of business and trade activities.

The first economic calendar cycle that was initiated by the European Central Bank was its first five-year cycle, the so-called ‘quantitative easing’ (QE) policy. It started in the second quarter of 2020 and lasted until the third quarter of 2020.

It mainly consisted of quantitative easing involving a reduction of long-term interest rates and long-term bonds, an increase in bank reserves, and a gradual improvement of the money supply. Also it helped stabilise financial markets by limiting the risk of financial institutions to move on risks and positions they took on loans and securities.

Other policy instruments used to help the economy were the zero interest rate policy, the different policy instruments that are being used in the European Central Bank, the European Financial Stability Facility, the European Investment Bank, the European Multi-annual Financial Framework, and the European Stability Mechanism. Of course, these are also used by the various governments of the member states of the European Union. In addition, there are also other instruments such as direct injections of liquidity by the national central banks into the banking systems.

In addition, the changes in the foreign exchange rates have also been part of the economic calendar since last year. During the summer of 2020, the U.S. dollar began a fall against several major currencies, especially the Japanese yen and the British pound. So, this is also a major factor that is included in the calendar.

However, this does not mean that technical indicators are not used. For example, they are used by trading firms to get better insight into the movement of the currency markets. However, the use of technical indicators in the economic calendar is normally not used in the daily trading news.

For example, in the case of currency markets, they are not included in the daily news because they can only be found out through specialised software that can be used on the basis of information available at the moment. So, the price changes do not depend on any economic indicators that may occur as a result of economic factors.

Furthermore, they are also not included in the daily news because there are day auctions where the buyers and sellers do not pay attention to any information that has come from the newspaper. Therefore, the price movements do not need to be analysed too closely.

Also, the economic calendar should not be used by anyone to predict the future. When it comes to predictions, one should also keep in mind that the year belongs to no one company or country and that the longer-term value of the currency is dependent on the situation in which the economy is presently at. Its evolution depends on the progress of the economic growth and development of the country and the economic growth.