FOREX - FUNDAMENTAL ANALYSIS

The traders make decisions using business reports, fundamentals, technical factors, and other related information. Traders use technical charts, trend lines, support and resistance levels, patterns of numbers and mathematical analysis to identify trading opportunities, whereas fundamentalists predict price movements trader to translate the information on economic conditions, including news, business reports, indications of a new government policy and reports, and even rumor. However, the dramatic price movements can occur if there is an unexpected event occurs. It could be raising interest rates from central banks to political events or activities of the war. However, often it is not the event itself that drives the market, but the expectation of an event that created the movement of the market.

Fundamental analysis is a method of analysis using the fundamental strength of a country. In general, the fundamental strength of a country is shown by economic data that country.

Some data Economy and its Impact on the USD

    Avarage Earning Rise, USD, USD Gains
    Balance of Payment Up, USD Gains
    Budget Deficit Down, USD Gains
    Business Inventories Down, USD Gains
    Capacity Utilization Up, USD Gains
    Car Sales Up, USD Gains
    Chicago PMI (Purchasing Management Index) Up, USD Gains
    Construction Spending Up, USD Gains
    Consumer Confidence Index (CCI) Up, USD Gains
    Consumer Credit (CI) Up, USD Gains
    Consumer Price Index (CPI) down, USD Gains
    Consumer Spending (Expenditure) Down, USD Gains
    Cost of Living Increases, USD Gains
    Current Account Down, USD Gains
    Corporate Profit Up, USD Gains
    Deflation Up, USD Gains
    Discount Rate Up, USD Gains
    Durabel Goods Orders Up, USD Gains
    Economic Monetary System (EMS) Up, USD Gains
    Factory Orders Rise, USD Gains
    Federal Budget Up, USD Gains
    Federal Reserve Fund Up, USD Gains
    Gross Domestic Product (GDP) Up, USD Gains
    Gross national Product (GNP) Up, USD Gains
    Housing Start Up, USD Gains
    Industrial Productions Up, USD Gains
    Invisible Trade Down, USD Gains
    Jobless Claims Up, USD Gains
    Leading Indicators Up, USD Gains
    Money Supply (M, M, M, M) Up, USD Gains
    National Association of Purchasing Managers (NAPM) Up, USD Gains
    Non Farm Payrolls Up, USD Gains
    Personal Expenditure Up, USD Gains
    Personal Income Down, USD Gains
    Prime Rate Up, USD Gains
    Product Price Index (PPI) Up, USD Gains
    Public Sector Debt repayment Up, USD Gains
    Retail Sales Down, USD Gains
    Trade Balance Up, USD Gains
    Trade Devicit Down, USD Gains
    Trade Weighted Index Down, USD Gains
    Unemployment rate down, USD Gains
    Unit Labour Cost Rise, USD Gains
    Value Added Tax Up, USD Gains
    Visible Trade Up, USD Gains
    Whole Sale Price Index Up, USD Gains
    Whole Sale Order Up, USD Gains

Any good news relating directly or indirectly to the economy can be an important fundamental factors to be observed. Basically, fundamental analysis can be grouped into four broad categories, namely:

    Economic Factors
    Political Factors
    Monetary and Financial Factors
    External Factors

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