The Consumer Price Index (CPI) has a major influence on forex trading. As an important economic indicator, CPI impacts not only forex, but also interest rates and stock and bond prices. The CPI is also used to make adjustments to cash flow mechanisms, such as pensions, health insurance and income. As a result, most traders [...]
Archive for the ‘Fundamental Analysis’ Category
How to Take Advantage of Forexnews
The forex market is the most vulnerable investment platform, which is considerably impacted by news from around the world. Consequently, by learning to take advantage of forexnews, investors can avoid several costly trading mistakes and improve their profitability. In fact, the ability to foresee and analyze forexnews is what separates an experienced forex investor from [...]
Currency Correlation and How to Use It?
Currencies are priced in pairs, no single pair trades completely independently of the others. This makes the understanding of correlation very important. For example, currency pair “A” moves in the same direction as pair “B” and we have been following up pair A’s move very closely. We expect it to go up and we buy. [...]
Fundamental Analysis: Study Economics, Trade the Markets
Let’s begin our brief examination of fundamental analysis by observing that up until a century ago there was only one school of analysis, and there were still a large number of self-made trading millionaires. That one school of analysis, of course, was fundamental analysis. Technical analysis has been with us as an organized discipline since [...]
Durable Goods and the Forex Market
Forex traders, like all investors in the big investment markets, pay close attention to the economic news of the day. That’s because economic data (or economic indicators) often shapes trading, whether it’s on the stock market or the currency market. One of the more common economic indicators that are utilized by Forex and other investors [...]
The ISM Manufacturing Index and the Economy
Since the Forex market is interwoven with the state of the economy, most Forex traders stay abreast of the latest changes in the economy. In addition to the usually news forecasts of the day, the majority of Forex traders utilize fundamental analysis or economic indicators to base their strategies on. One economic indicator that’s often [...]
The Forex Market and the Employment Cost Index
Fundamental analysis, or the analysis of the market based upon economic indicators, is a huge part of developing Forex market strategies. Most online Forex trading system platforms provide data on economic indicators through their online Forex journals, which are often offered free of charge. One of the more important economic indicators around is the Economic [...]
The Establishment Survey and the Forex Market
Building a strategy for the Forex market hinges upon two main variables: technical and fundamental analysis. The technical aspect analyzes various currency rate fluctuations over time (through charts), while the fundamental facet focuses on macroeconomic data and political news. That macroeconomic data is available on most online Forex trading system platforms, and usually at no [...]
Forex Market Trading Hours
The Forex market has a huge advantage over the other investment markets – it’s open 24 hours a day, six days a week. Whereas the commodities and stock market operates five days a week (Monday through Friday) during normal business hours, the Forex market continues its activity around the clock. If you want to trade [...]
New Housing Index Benefits Forex Market Investors
As most Forex market traders utilize fundamental analysis to plan their market strategies, the news of a newly developed housing index is making waves in the industry. Up until now, the most common housing index used by Forex traders to predict future currency movement was the S&P/Case-Stiller home price index. This index tracks price change [...]
