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You also have the option to opt-out of these cookies. Inflation data is a key point to watch, as it gives a general picture of the balance between economic policies, and the cost of living being experienced by millions of US citizens. This is important to watch because it can give you a sense of whether the economy is growing or shrinking. GDP or Gross Domestic Product is is the measure of the total value of all goods and services produced in a country in a given year.

This is important to watch because it can give you a sense of how fast the economy is growing. Including both new orders and production levels, manufacturing data is important because manufacturing is a key driver of economic growth, and when there is strong demand for manufactured goods, it can lead to other areas of the economy picking up as well.

This includes both retail sales and personal consumption expenditures. Consumer spending data is important because this remains a key driver of economic growth, and when there is strong demand for goods and services, it can lead to other areas of the economy picking up as well.

This is important because business investment is a key driver of economic growth, and when there is strong demand for investment, it can lead to other areas of the economy picking up as well. Trade data looks at both exports and imports to get a picture of how balanced an economy is, and whether you are moving direction from a perspective of important economic sectors.

This is important because trade is a key driver of economic growth, and when there is strong demand for goods and services, it can lead to other areas of the economy picking up as well. Looking at both federal and state government spending is important because government spending is a key driver of economic growth from an infrastructure perspective and generally gives a picture as to how healthy the government balance sheets are. As the largest economy in the World, when the US government is spending on a high level, you can expect to see impetus in various economic sectors that lead to other areas of the economy picking up as well.

Interest rate levels set the baseline of the cost of borrowing money. This is important because it can give you a sense of how expensive it is for businesses to borrow money and invest in new projects, as well as the rates for mortgages. High interest rates usually mean that inflation may be getting a little too hot, and monetary policy is reigning in spending, but that is not always the case.

When interest rates are high, and the cost of borrowing is high, it can lead to slower economic growth moving forward as spending inevitably reduces which can impact many other economic sectors. Many traders wait eagerly for the Federal Reserve minutes to be released to comb through. These 10 US economic data points are just a few of the key economic indicators that you can watch on a monthly basis to get a sense of the overall health of the US economy.

By keeping an eye on the data, you can get a better idea of how the economy is performing and what areas might be doing better or worse than others.

One piece is of data in a silo is not going to tell you all that much, but when you look at the set of data holistically, you can interpret more easily from a fundamental trading perspective what might be happening in the US economy on a macro level. This should then feed into your overall trading plan, whether it be US stocks , ETFs , or forex trading , you will want to have a general idea on the economic direction of the US.

The US economy is the largest in the world and has a big impact on global economic outlook. Recently, the US economy has been growing at a faster pace than most other developed economies. A large, healthy US economy is good news for the rest of the world as it suggests that American consumers and businesses have more money to spend on imported goods. This increased demand can lead to higher prices for exports and a positive effect on the balance of trade.

The US is also a big player in global financial markets.

We are looking forward to sell ForexAbode. com because of focus on our main business. Please contact himanshu reachext. Fundamental analysis for Forex the analysis of the economy of a country or region as well as the comparative analysis of various economies. It not only takes into account the current economic indicators to gauge the strength or weakness, but also the political factors, natural disasters and everything which can have an impact on the overall global economy as well as on the fundamentals of the specific economies in question.

The Forex market is very dynamically changing market and often the price-actions are quite volatile. Technical analysis helps for short-term trades but the overall longer-term moves are dictated by the fundamentals of the economies concerned.

Forex fundamental Analysis is like the canvas and technical analysis is the colors on it. Even we base our trade positions on technical indicators or pure price action but we cannot ignore the fundamentals and any sudden changes in those.

Fundamental analysis for Forex trading is all about the supply and demand of a particular currency and the health of the economy of the country or region in question. Fundamental Analysis is used to analyze the valuation of currencies by monitoring various economical, social, political and environmental factors. There are a number of economic indicators, such as interest rates, unemployment rates, gross domestic product GDP and many other which need to be monitored.

Even in its basic form the fundamental analysis is a complex subject. It is not something only black and white or absolute in nature. The fundamentals of economy need a very in-depth study and that is not the scope of this section. What we need to know is the major indications which can bring major changes in the price actions. The scope of this article is to point out what we should look out for, without going in the depths of economic study and analysis.

The main things for which we need to keep an eye open for our basic fundamental analysis are as follows:. There are indicators which measure the economic strengths directly and there are can be factors which can affect the economy or the economic sentiments indirectly. Similarly there is quantitative economic data and also qualitative data which can strengthen or weaken the market sentiments. These all factors drive the price action and strength and weakness of currencies in the Forex market.

Some of these indicators may have short-term effects because of sudden but temporary change in the sentiments and some may have longer-term impacts for a long uptrend or downtrend. Economic data like gross domestic product, unemployment situation, retail sales etc. are the tools to measure the economic strengths directly to know the strength of the fundamentals of the economy in question.

Political situation, natural disasters and even some qualitative economic data may act as indirect measures to affect the sentiments and hence drive the price actions in the Forex market.

For example a big natural disaster which causes a lot of damage may have immediate adverse effects but in the longer run it may be perceived as an opportunity for the growth in certain sectors. For example a big natural disaster in a developed country will soon end up as a boom in the construction industry and improve the employment situation and many other directly or indirectly linked economic fundamentals.

On the other hand the same disaster in an underdeveloped country may bring a longer-term weakness in the market sentiments as the country may not have the resources for rebuilding the nation.

Changes in the political situation and hence possible changes in policies, again, can bring volatile moves in the Forex rates. Similarly, economic quantifiable data like inflation may have different effects on the currency strengths in different situations and for different currencies.

for example sudden increase in inflation rate in Australia may strengthen the Australian dollar more than a inflation increase in some other country for that country's currency. The reason is simple that Australian dollar attracts a lot of carry trades.

Indirect measures may also include impact on one country's currency because of change in the economic fundamentals of some other country if the economic interdependence is too high. For example any positive economic data from China would bring positive effect on Australian dollar very fast because Australia's exports dependency on China.

Some of the earlier mentioned economic releases like employment situation, gross domestic products, retails sales and many others are quantitative in nature because these represent the strength or weakness of the economy in absolute figures. Qualitative economic releases are also represented in the figures but those figures do not measure the economic strength directly.

Examples of qualitative data could be various economic surveys e. consumer sentiment survey and various market sentiments and confidence surveys. Economies do not change overnight but various economic data and news from a country can change the sentiments overnight. Sometimes the effects of such changes may be temporary but at other times those can results in the change of the trend in the currency prices for weeks or months.

Hence while we keep a look on the long-term fundamentals, we cannot use those for the day-today trading. Trading is different from investing and even a medium-term trade may last only for a few days or a couple of weeks. What governs the price movement during short-term or medium-term is the day-today economic releases and news which may have some effects on the economic sentiments.

Apart from the periodic releases of the economic data, a news can be a major merger or acquisition of major corporations or a political news indicating some major change in the political leadership which may affect economic policies or even a natural disaster. We use the fundamental analysis by keeping track of the economic events and releases and also any other such news items.

We take our trade positions in the direction of changing market sentiments. Every nation or economic zone comes out with various economic data which indicate the health of the economy.

Some economic indicators are critical and a change in those may bring a major change in the price action while some other releases may not be so critical. The first step is to analyze and understand the importance of various economic indicators and then to keep an eye on the periodically released data. The importance of various indicators change from country to country. For example a decline in housing and house construction may have a major effect on U. Dollar but the same data may not have the same effect on Japanese Yen.

The reason is simple that for an average Japanese person, owning his or her own house is not one of the important objective as it may be for his or her American counterpart. As we have mentioned earlier, even if we base our trading decisions only on technical analysis, it is always better to keep the fundamentals in mind as they can cause major volatilities at times.

Sometimes the changes in the trend may be long-lasting and sometimes those are just temporary but even at those times, there may be quite volatile price actions just before and after any important economic data is released. We are listing below some of the major economic releases and economic indicators which are important for the change in sentiments for the price actions in the Forex market. Every country and economic zone has a version of these. We always believe in using Forex Technical analysis in combination with Fundamental Analysis when trading currencies.

Please also check the Fundamental analysis Forex forum. Tech jobs in Japan link on Notion. We will send email alerts as soon as the Forex analysis is updated. Request you to check the Junk spam mail folder immediately in case Google group mail is not received in Inbox. Home Forex Market. FX Fundamental Analysis Economic Calendar.

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Javascript is required to use GTranslate multilingual website and translation delivery network Select Language English Arabic Hindi. Forex Fundamental Analysis and Economic Indicators Fundamental analysis for Forex the analysis of the economy of a country or region as well as the comparative analysis of various economies.

What is Fundamental Analysis? The main things for which we need to keep an eye open for our basic fundamental analysis are as follows: Economic data releases Major News about change in the political leadership and any policies changes. Any political or other unrests and natural disasters. Countries central bank's policy changes. Direct Measures for Economic Strength Economic data like gross domestic product, unemployment situation, retail sales etc.

Quantitative economic data Some of the earlier mentioned economic releases like employment situation, gross domestic products, retails sales and many others are quantitative in nature because these represent the strength or weakness of the economy in absolute figures. Qualitative economic data Qualitative economic releases are also represented in the figures but those figures do not measure the economic strength directly.

Fundamentals and Forex Trading Decisions Economies do not change overnight but various economic data and news from a country can change the sentiments overnight. Major Economic Releases Every nation or economic zone comes out with various economic data which indicate the health of the economy.

Economic Indicators for Fundamental Analysis We are listing below some of the major economic releases and economic indicators which are important for the change in sentiments for the price actions in the Forex market. Trade Balance All Trade Balance Medium to High A high reading is positive or bullish, while a low reading is negative or bearish. Trade balance generally creates more volatility for USD. Treasury International Capital TIC US Treasury International Capital TIC Medium A high reading is positive or bullish for the USD, while a low reading is negative or bearish.

US Empire State Business Conditions Index Medium A positive result indicates bullish for US Dollar, while a negative result shows poor growth of US Dollar. All Industrial Production Low to Medium Medium for Japan High reading is positive or bullish , while low reading is negative or bearish All Purchasing Managers' Index Medium A result above 50 signals is bullish for the currency, whereas a result below 50 is seen as bearish.

Durable Goods US Durable Goods Orders Medium A high reading is positive or bullish for the USD, while a low reading is negative or bearish. Consumer Confidence All Consumer Confidence Medium A high reading is positive or bullish for the currency, while a low reading is negative or bearish. All Retail Sales Medium to High High for US A high reading is seen as positive or bullish , while a low reading is seen as negative or bearish. US Retails Sales Ex Autos High A high reading is seen as positive or bullish , while a low reading is seen as negative or bearish for USD.

US Personal Spending High A high reading is seen as positive or bullish , while a low reading is seen as negative or bearish for USD. Japan Consumer Confidence House Holds Medium A result above 50 is positive or bullish for the JPY, whereas a result below 50 is seen as bearish.

Inflation US Personal Consumption Expenditure -Price Index, Core High A high reading is bullish for the USD, while a low reading is bearish. All Consumer Price Index CPI Medium to High A high reading is seen as positive or bullish for the currency, while a low reading is seen as negative. US Gross Domestic Purchase price Index High A high reading is seen as positive, or bullish for the USD, while a low reading is seen as negative, or bearish.

UK Core Consumer Price Index Medium A high reading is seen as positive or bullish for the GBP, while a low reading is seen as negative or Bearish. UK Retail Price Index High A high reading is seen as positive or bullish for the GBP, whereas a low reading is seen as negative or bearish. All Producer Price Index PPI Low to Medium A high reading is seen as positive or bullish for the currency, whereas a low reading is seen as negative or bearish.

All Import Price Index Low to Medium. Medium for US A high reading is seen as positive or bullish , while a low reading is seen as negative or bearish. UK BOE Inflation Letter High A high reading is seen positive bullish for the GBP, whereas a low reading is seen as negative bearish. It is worth noting that this tentative letter is only published when the CPI YoY is above 3.

your password. Trade balance generally creates more volatility for USD. The US economy was expected to continue growing at a robust pace in the coming years, but that outlook now looks to have less confidence in light of geopolitic tensions, supply chain issues, high levels of inflation and of course the war in Ukraine. Do not invest funds that you are not prepared to lose. A high reading is seen as positive or bullish , while a low reading is seen as negative or bearish for USD. Sweet site, super design, very clean and apply pleasant. One of the main reasons why I and all of my members prefer to trade primarily with technical analysis is because there are literally millions of different variables in the world that can affect financial markets at any one time.

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