Is It Forex Fundamental Analysis Works?

There are 2 types of analysis commonly used by traders, namely:

1. Fundamental analysis: by relying on the news / rumors in the market.
2. Technical analysis: by relying on charts and mathematical formulas.

Fundamental Analysis:
Fundamental analysis is an analysis that relies on news that happens in the world market. Or that was circulated in the market. The content of this news drives the market trader’s emotions to determine the value of a currency, equity or other instruments. One example is the Central Bank rate hike by the Fed (U.S. central bank) could mean a stronger dollar. Rising prices will hoist petrolleum stocks related to commodities, etc.. If you do not like the analysis of complex-complex (count, graph, etc.), it is now time for you to learn this fundamental analysis.

To study the fundamental analysis correctly then you should study economics, the financial macro. For example, why the increase in interest rates can make the currency strengthen. Here will not be explained in detail about the laws of that economy. But there is some news (economic indicators) that if you can use as reference.

American political & economic conditions are very influential to world economic conditions, therefore the news and U.S. economic data is often used as a reference by investors against major world currency movements.

 Economic IndicatorsUp / DownUS $
1Average Earningupstrong
2Balance of Paymentupstrong
3Budget Deficitdownstrong
4Business Inventoriesdownstrong
5Capacity Utilizationupstrong
6Car Salesupstrong
7Chicago PMI (Purchasing Management Index)upstrong
8Construction Spendingupstrong
9Consumer Confidence Index (CCI)upstrong
10Consumer Credit (CI)upstrong
11Consumer Price Index (CPI)upstrong
12Consumer Spending (Expenditure)downstrong
13Cost of Livingupstrong
14Current Accountdownstrong
15Corporate Profitupstrong
16Deflationupstrong
17Discount Rateupstrong
18Durable Goods Ordersupstrong
19Economic Monetary System (EMS)upstrong
20Factory Ordersupstrong
21Federal Budgetupstrong
22Federal Reserve Fundupstrong
23Gross Domestic Product (GDP)upstrong
24Gross National Product (GNP)upstrong
25Housing Startupstrong
26Industrial Productionsupstrong
27Invisible Tradedownstrong
28Jobless Claimsdownstrong
29Leading Indicatorupstrong
30Money Supply (M1, M2, M3, M4)upstrong
31National Associationupstrong
32(NAPM)upstrong
33Non Farm Payrollsupstrong
34Personal Expenditureupstrong
35Personal Incomedownstrong
36Prime Rateupstrong
37Product Price Index (PPI)upstrong
38Public Sector Debt Repaymentupstrong
39Retail Salesdownstrong
40Trade Balanceupstrong
41Trade Deficitdownstrong
42Trade Weighted Indexdownstrong
43Unemployment Ratedownstrong
44Unit Labour Costupstrong
45Value Added Taxupstrong
46Visible Tradeupstrong

Once you know this, the questions is where I can get all this news. You do not need to bother, with the development of the internet you can obtain news very quickly and easily.
You can see it in: calendar forex

 
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