It helps traders track important data releases and events, as well as their results. Knowing what is going on in the market can help you make more informed trading decisions.

The economic calendar shows the date and time of the event, the relevant country or currency and the likely impact the data will have on the market. Forecast numbers are also available and the actual numbers for economic news events will be updated when they are released. Depending on whether the data is positive or negative for the country, you might want to consider buying or selling the currency accordingly.

The most important news events in forex trading are interest rates, Non Farm Payrolls (NFP) and unemployment figures, Gross Domestic product (GDP), retails sales and consumer price indices (CPI) or inflation data. These economic data releases tend to have the highest impact on the forex market.

You should be available and ready to execute trades if you want to trade the data releases. Markets can be quite volatile during these times so you might find opportunities to trade. Alternatively, you can follow and track the data to get a better idea about the health of a country's economy. Then use that information to guide your trading decisions.