The currencies of a country does not become weak or strong without reason. A large proportion of the value of a currency is based on the confidence of the economic strength of the country of origin of it. The economic strength is judged by certain indicators that are followed very closely when we are operating in Forex. When these lights change, the value of currencies may fluctuate. When the economic health of a country is in good condition, it means that your currency is strong or traded against other currencies.
Forex Fundamental analysis has become an important point because the economic indicators have definitely become market-moving factors. When we focus on the impact of a country's economic numbers have in stock prices in Forex, there are 5 indicators that are observed more than others, because of its impact on the market. These economic indicators are:
1. Non Farm Payrolls: jobs created or lost in the U.S. in the last month
2. Interest Rate Decision: The decision to raise, lower or maintain the interest
3. Trade balance: Trade balance
4. CPI - Inflation: price of basic goods and inflation and
5. Retail Sales: Retail Sales
Aside from knowing the date of announcement of the indicators, it is vital to know what the economists' predictions regarding the indicators. For example, knowing that a good number of new jobs generated in the U.S. for one month is 250,000, is not as important as knowing which was the economists' prediction regarding the outcome.
Predictions are often wrong, and in these cases there is an abrupt change in the market. If economists believed would have generated 250,000 new jobs in January, but were created only 100,000, this will make the U.S. economy weakens and therefore do its currency (dollar), with respect to the others.
The indicators provide opportunities to make good trades in the Forex market because prices often shoot up several points to one place or another depending on whether the number given by the indicator agrees or disagrees with the expectations of economists, and this normally occurs in the first 30 minutes after having released the ad.
Most brokers gives the calendar service announcements with the respective expectations in terms of numbers as an aid to operators, as well as comments regarding the fundamental analysis.
Then discuss each of the most important news in order of relevance to fundamental analysis in Forex.
1. Non farm payrolls - Unemployment Rate
The unemployment porcentanje measures the strength of the labor market. One of the ways analysts measure the strength of an economy is by number of jobs created and the percentage of workers unable to find work. Many jobs created in a month is indicative of economic growth, as companies must increase its workforce to meet the demands.
This indicator shows an average movement of 124 pips during the first 20 minutes after his announcement. Date announced: First Friday of each month at 8:30 EST.
2. Interest Rate Decision
The Federal Open Market (FOM) decides the discount rate, which is the percentage by which the Federal Reserve Bank charges member banks for loans. The percentage is decided during the meetings of the FOM with regional banks and the Federal Reserve Board.
This indicator shows an average movement of 74 pips during the first 20 minutes after his announcement. Date announced: 8 meetings per year. The dates are known in advance, so you have to pay attention to the economic calendar.
3. Trade Balance
The trade balance measures the difference between the value of goods and services that a nation exports and the value of goods and services it imports. A good balance of trade is indicative of the value than it exports is greater than the value that is imported and a trade balance deficit is one in which imports are greater than exports.
This indicator shows an average movement of 63 pips during the first 20 minutes after his announcement. Date announced: Usually around the second Friday of each month.
4. CPI - Inflation
The CPI is the key to inflation, which measures the price of a basic basket of consumer goods. Higher prices are considered negative for the economy, but as the Central Bank generally responds to inflation by raising interest rates, currencies sometimes respond positively to increased inflation.
This indicator shows an average movement of 44 pips during the first 20 minutes after his announcement. Date announced: Monthly, around the 13th of each month at 8:30 EST.
5. Retail Sales
Retail sales show when a country's economic activity based on the same business. This indicator shows an average movement of 43 pips during the first 20 minutes after his announcement. Date announced: Monthly, about 11 of every month at 8:30 EST.
related posts
- 123 pattern
- forex stealth
- sniper forex
- alligator indicator
- fibonacci fans
Forex Fundamental analysis has become an important point because the economic indicators have definitely become market-moving factors. When we focus on the impact of a country's economic numbers have in stock prices in Forex, there are 5 indicators that are observed more than others, because of its impact on the market. These economic indicators are:
1. Non Farm Payrolls: jobs created or lost in the U.S. in the last month
2. Interest Rate Decision: The decision to raise, lower or maintain the interest
3. Trade balance: Trade balance
4. CPI - Inflation: price of basic goods and inflation and
5. Retail Sales: Retail Sales
Aside from knowing the date of announcement of the indicators, it is vital to know what the economists' predictions regarding the indicators. For example, knowing that a good number of new jobs generated in the U.S. for one month is 250,000, is not as important as knowing which was the economists' prediction regarding the outcome.
Predictions are often wrong, and in these cases there is an abrupt change in the market. If economists believed would have generated 250,000 new jobs in January, but were created only 100,000, this will make the U.S. economy weakens and therefore do its currency (dollar), with respect to the others.
The indicators provide opportunities to make good trades in the Forex market because prices often shoot up several points to one place or another depending on whether the number given by the indicator agrees or disagrees with the expectations of economists, and this normally occurs in the first 30 minutes after having released the ad.
Most brokers gives the calendar service announcements with the respective expectations in terms of numbers as an aid to operators, as well as comments regarding the fundamental analysis.
Then discuss each of the most important news in order of relevance to fundamental analysis in Forex.
1. Non farm payrolls - Unemployment Rate
The unemployment porcentanje measures the strength of the labor market. One of the ways analysts measure the strength of an economy is by number of jobs created and the percentage of workers unable to find work. Many jobs created in a month is indicative of economic growth, as companies must increase its workforce to meet the demands.
This indicator shows an average movement of 124 pips during the first 20 minutes after his announcement. Date announced: First Friday of each month at 8:30 EST.
2. Interest Rate Decision
The Federal Open Market (FOM) decides the discount rate, which is the percentage by which the Federal Reserve Bank charges member banks for loans. The percentage is decided during the meetings of the FOM with regional banks and the Federal Reserve Board.
This indicator shows an average movement of 74 pips during the first 20 minutes after his announcement. Date announced: 8 meetings per year. The dates are known in advance, so you have to pay attention to the economic calendar.
3. Trade Balance
The trade balance measures the difference between the value of goods and services that a nation exports and the value of goods and services it imports. A good balance of trade is indicative of the value than it exports is greater than the value that is imported and a trade balance deficit is one in which imports are greater than exports.
This indicator shows an average movement of 63 pips during the first 20 minutes after his announcement. Date announced: Usually around the second Friday of each month.
4. CPI - Inflation
The CPI is the key to inflation, which measures the price of a basic basket of consumer goods. Higher prices are considered negative for the economy, but as the Central Bank generally responds to inflation by raising interest rates, currencies sometimes respond positively to increased inflation.
This indicator shows an average movement of 44 pips during the first 20 minutes after his announcement. Date announced: Monthly, around the 13th of each month at 8:30 EST.
5. Retail Sales
Retail sales show when a country's economic activity based on the same business. This indicator shows an average movement of 43 pips during the first 20 minutes after his announcement. Date announced: Monthly, about 11 of every month at 8:30 EST.
related posts
- 123 pattern
- forex stealth
- sniper forex
- alligator indicator
- fibonacci fans
Forex is simple follow the trend and you will rich.
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