The relationship between forex and the economic calendar is deeply interconnected, as the economic calendar provides scheduled announcements of key economic indicators that influence currency prices. Forex traders closely monitor this calendar to anticipate market volatility and plan their trades accordingly. Events such as interest rate decisions, inflation reports (CPI), employment data (like Non-Farm Payrolls), GDP figures, and central bank speeches are among the most impactful.

These economic releases reflect the health and direction of a country's economy, directly affecting the value of its currency. For example, stronger-than-expected job growth in the U.S. might boost the U.S. dollar as it suggests a stronger economy and possible rate hikes by the Federal Reserve. Conversely, poor data can weaken a currency.

Volatility often spikes during high-impact events, offering trading opportunities but also increasing risk. As a result, many traders avoid trading just before major announcements or use strategies designed for news trading. Understanding the timing and expected impact of these events is crucial for risk management and strategic planning. Therefore, the economic calendar is an essential tool in forex trading, helping traders stay informed and make data-driven decisions aligned with macroeconomic developments.