If you pick the news on the 08:30 column, the Core Retail Sales in Canada, it will be released at 08:30 in the morning, US Eastern Time. It is not as straight forward as you mentioned. In other words, there should be no arbitrage opportunity for someone to buy inexpensive pencils in one country and sell them in another for a profit. Sales forecasting is the process of estimating future sales. (6.19) News in yellow like this nationwide HPI month over month, can be ignored. This is the previous release. Proper risk-return management means that b. consistent with the objectives of the firm, an appropriate trade-off between risk and return should be determined.. 3. The problem is that when you start to summarize MPE for multiple forecasts, the aggregate value doesn’t represent the error rate of the individual MPEs. After all, trading the Forex market means buying or selling a currency pair, and the currency reflects the strengths or the weaknesses of an economy. Yellow - not that significant and trading on the news, well, it takes a while to get it right…, I have a question if actual and forecast are the some what should I do buy or sell, Please i want tp Know…Whay happens when actual is equal to forecast, Powered by Discourse, best viewed with JavaScript enabled. For the introduction to the series and other posts in the series, please click here. And this right here is why I don’t trade news events, and I pray I’m not in a trade when a big one is coming. You’ll also learn what the color-coding means, as well as what all those figures represent. High interest rates will attract investors looking for the highest yield on their investments, causing demand for the currency to increase, which again would result in an appreciation of the currency. The news that is making the economic calendar is known in advance and is repeated over and over again. Hmmm…. Let’s start with a sample forecast. In the picture above, the time is set based on North American input, but it can be changed to display any timezone. Using the variance formula and presenting this type of information is critical in FP&A. The formula for dollar variance is even simpler. The previous data is 51.7, and it is forecast to move to 51.5. The PPP approach forecasts that the exchange rate will change to offset price changes due to inflation based on this underlying principle. Who cares? To overcome that challenge, you’ll want use a metric to summarize the accuracy of forecast. This code comes in three colours: The next column shows the name of the actual news that is released. When it comes to labor forecasting, being above actuals means that you’re using too much labor and wasting payroll. France is doing ok , the trend remains up - see this link. A different currency that you may consider weaker. Bullish means we want to go long, and we want to buy GBP. If the “actual” is greater than the “forecast”, this is good for the currency. If they’re not answered, and therefore not counted, we end up with an unrealistic idea of total volume. So by the time that you select the date here, (note to voiceover – he circles the date) Friday, September the 29th. You might think this is rubbish, but it is not.