How to Read Economic Indicators | Release Times in MT5 Server Time and Precautions Around Releases
When you watch an MT5 chart, a candlestick sometimes jumps sharply at a certain time. An economic indicator release can be the trigger.
However, the times shown on an MT5 chart are server time, not Japan time. A release time you looked up in Japan time cannot be matched to the chart as it is.
This article explains what the main economic indicators mean, how to convert Japan time to EdgeGraph FX MT5 server time, and what to watch out for before and after releases.
Table of Contents
Markets Move on the Gap From Forecasts
An economic indicator is a release that shows a country's employment, prices, and economic conditions in numbers.
Exchange rates tend to move more when the result differs greatly from the market forecast than because of the number itself. A result stronger than expected tends to lead to buying of that country's currency, and a weaker result tends to lead to selling.
US Nonfarm Payrolls
US Nonfarm Payrolls is an indicator showing the number of employed people and the unemployment rate in the US, and it is generally released on the first Friday of each month.
When the result differs greatly from the forecast, the US dollar can move sharply.
US Consumer Price Index (CPI)
The US Consumer Price Index (CPI) is an indicator showing how fast prices are rising in the US, and it is released in the middle of each month.
Because price trends affect the outlook for US interest rates, they can lead to moves in the US dollar.
FOMC
The FOMC is the meeting that decides US policy interest rates, and it is held eight times a year.
The policy rate is announced on the second day of the meeting, and a press conference by the Chair follows the statement. For this reason, price moves can continue after the statement is released.
Bank of Japan Monetary Policy Meeting
The Bank of Japan Monetary Policy Meeting decides Japan's monetary policy and is held eight times a year over two days.
The result is announced on the second day, and the time is not set in advance. It is often around midday, and the time in Japan time does not change between summer time and winter time.
Converting Japan Time to Server Time
The time shown in EdgeGraph FX MT5 is 6 hours behind Japan time in summer time and 7 hours behind in winter time.
In Japan time, the release time of US indicators shifts by one hour between summer time and winter time. Server time, on the other hand, switches in step with US daylight saving time, so US indicators are released at the same server time all year round.
Release times of major US indicators (Japan time and EdgeGraph FX MT5 server time)
| Indicator | Japan time (summer time / winter time) | MT5 server time |
|---|---|---|
| US Nonfarm Payrolls / US CPI | 21:30 / 22:30 | 15:30 |
| US ISM Manufacturing PMI | 23:00 / 24:00 | 17:00 |
| FOMC statement | 3:00 / 4:00 (next day) | 21:00 |
In Japan time, the FOMC statement comes in the early morning of the day after the second day of the meeting, but in server time it is at 21:00 on the second day.
To convert, subtract the difference from server time from Japan time. For example, US Nonfarm Payrolls in winter time is at 22:30 Japan time, and server time is 7 hours behind Japan time.
22:30 − 7 hours = 15:30
In summer time, you subtract 6 hours from 21:30 Japan time, so it is the same 15:30.
If the result of the Bank of Japan Monetary Policy Meeting comes out around noon Japan time, it is around 6:00 server time in summer time and around 5:00 in winter time.
However, European indicators are different, because the dates when Europe switches between summer time and winter time differ from those of the US.
In the period when the US is on summer time and only Europe is on winter time, European indicators appear one hour later in server time.
The next time this period occurs is March 14 to 27, 2027.
Checking Release Times in Server Time
You can check whether the converted time is correct by looking at the candlesticks of past indicator releases.
For example, open the 1-minute chart for the Friday when the most recent US Nonfarm Payrolls was released, and look for the candlesticks around 15:30 server time.
If the price range becomes larger from the 15:30 candlestick, you can judge that the conversion is correct.
However, in months when the result matched the forecast, price moves can be small. It is a good idea to compare several months.
Note that on other brokers' MT5 the difference between server time and Japan time may be different, so the times in this article are for EdgeGraph FX.
If you want to know how to check the difference from Japan time, check the article below.
Precautions Before and After Releases
Our guidelines prohibit trading that targets only the moment of an economic indicator release. Around releases, either avoid trading or decide after checking the following two points.
Spreads Tend to Widen
Around a release, the number of market participants can drop or suddenly surge, and spreads can widen.
When spreads widen, the cost at entry becomes larger than usual.
If you want to know the effective risk-reward ratio after subtracting the spread, check the article below.
Execution Prices Can Slip
When prices move fast, the price you ordered at and the price actually executed can differ.
This applies not only to market orders: even a stop order for a stop loss can be executed at a worse price than the one you specified.
Check whether you have left limit or stop orders in place across the release time.
If you hold open positions, decide what to do with them before the release.
If you put the release time in your schedule after converting it from Japan time to server time, you are less likely to miss it.
If you want to know how to calculate lot size, check the article below.
FAQ
Summary
Major US economic indicators are released at the same time in both summer time and winter time in EdgeGraph FX MT5 server time. US Nonfarm Payrolls and US CPI are at 15:30, and the FOMC statement is at 21:00.
Around releases, spreads are more likely to widen and execution prices more likely to slip. Avoid trading that targets only the moment of a release, and decide whether to trade after checking the time.
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