Fundamental Education

Key factors that affect a Currency's value.
• Interest Rates
• Economic Growth
• Geo-Politics
• Trade and Capital Flows
• Merger and Acquisition Activity

Key factors that affect a Crude Oil’s value
• Crude Oil inventories
• Political stability in the Middle East
• Recessions causing demand cutbacks
• Exchange rate of dollars: as oil is priced in dollars

Most Important Economic Indicators

Gross Domestic Product
Change in the inflation-adjusted value of all goods and services produced by the economy. It's the broadest measure of economic activity and the primary gauge of the economy's health

Unemployment rate
Percentage of the total work force that is unemployed and actively seeking employment

Trade Balance
Difference in value between imported and exported goods

Monetary Policy Statement
It's among the primary tools to communicate with investors about monetary policy. It contains the outcome of their decision on interest rates and commentary about the economic conditions that influenced their decision. Most importantly, it projects the economic outlook and offers clues on the outcome of future rate decisions;

Consumer Price Index
Change in the price of goods and services purchased by consumers. The average price of various goods and services are sampled and then compared to the sampling done a year earlier

Have you performed any correlation studies between the economic factors and the currency pairs concerned? For example, if UK interest rates rise by say 0.5%, whilst US rates remain on hold, what is the likely percent increase in the GBPUSD? Further, is there a time-lag between the interest rate rise and the GBPUSD rise?

I previously traded interest rate futures, and economic data correlation proved quite helpful in forecasting direction, range of forecast move, and timing. Would be interested in hearing from forex traders performing this analysis, and the results achieved.

wallstreett1984 posted:
    Key factors that affect a Currency's value.
• Interest Rates
• Economic Growth
• Geo-Politics
• Trade and Capital Flows
• Merger and Acquisition Activity

Key factors that affect a Crude Oil’s value
• Crude Oil inventories
• Political stability in the Middle East
• Recessions causing demand cutbacks
• Exchange rate of dollars: as oil is priced in dollars

Most Important Economic Indicators

Gross Domestic Product
Change in the inflation-adjusted value of all goods and services produced by the economy. It's the broadest measure of economic activity and the primary gauge of the economy's health

Unemployment rate
Percentage of the total work force that is unemployed and actively seeking employment

Trade Balance
Difference in value between imported and exported goods

Monetary Policy Statement
It's among the primary tools to communicate with investors about monetary policy. It contains the outcome of their decision on interest rates and commentary about the economic conditions that influenced their decision. Most importantly, it projects the economic outlook and offers clues on the outcome of future rate decisions;

Consumer Price Index
Change in the price of goods and services purchased by consumers. The average price of various goods and services are sampled and then compared to the sampling done a year earlier

I think it is not enough to have this info, you have to analise this info and check the right trend's moving, sometimes even this doesn't help)))Good luck to everybody))

wallstreett1984 posted:
    Key factors that affect a Currency's value.
• Interest Rates
• Economic Growth
• Geo-Politics
• Trade and Capital Flows
• Merger and Acquisition Activity
• Current price/availability of weed

Key factors that affect a Crude Oil’s value
• Crude Oil inventories
• Political stability in the Middle East
• Recessions causing demand cutbacks
• Exchange rate of dollars: as oil is priced in dollars
• has chikot cornered the oil market?

sharpforex posted:
    Have you performed any correlation studies between the economic factors and the currency pairs concerned? For example, if UK interest rates rise by say 0.5%, whilst US rates remain on hold, what is the likely percent increase in the GBPUSD? Further, is there a time-lag between the interest rate rise and the GBPUSD rise?

I previously traded interest rate futures, and economic data correlation proved quite helpful in forecasting direction, range of forecast move, and timing. Would be interested in hearing from forex traders performing this analysis, and the results achieved.

are you sure it applies to forex-trading? as far as i'm aware most forex trading is done in the short-term, while the affects you're describing are good for long-term trading only.

Chunky_Monkey posted:
    

sharpforex posted:
   are you sure it applies to forex-trading? as far as i'm aware most forex trading is done in the short-term, while the affects you're describing are good for long-term trading only.

Short-term traders are always at the mercy of the long-term direction.

The process of deconstructing the impact of political, economic, and social factors on the relative value of a currency is known as fundamental analysis. Forex traders can make well-informed trading decisions by identifying the major drivers of a currency's inherent value.

Well, learning of fundamentals of forex is very necessary to become successful. Always ready to learn new things when you start trading.

wallstreett1984 posted:
Key factors that affect a Currency's value.
• Interest Rates
• Economic Growth
• Geo-Politics
• Trade and Capital Flows
• Merger and Acquisition Activity

Key factors that affect a Crude Oil’s value
• Crude Oil inventories
• Political stability in the Middle East
• Recessions causing demand cutbacks
• Exchange rate of dollars: as oil is priced in dollars

Most Important Economic Indicators

Gross Domestic Product
Change in the inflation-adjusted value of all goods and services produced by the economy. It's the broadest measure of economic activity and the primary gauge of the economy's health

Unemployment rate
Percentage of the total work force that is unemployed and actively seeking employment

Trade Balance
Difference in value between imported and exported goods

Monetary Policy Statement
It's among the primary tools to communicate with investors about monetary policy. It contains the outcome of their decision on interest rates and commentary about the economic conditions that influenced their decision. Most importantly, it projects the economic outlook and offers clues on the outcome of future rate decisions;

Consumer Price Index
Change in the price of goods and services purchased by consumers. The average price of various goods and services are sampled and then compared to the sampling done a year earlier

Very informative post.

Fundamental is key to analyzing the market properly.

Don’t forget about the technical factor in the analysis. It is also important.

Economic reports are really helpful to know whether the nation’s economy has improved over time or not and the broadest measure of it is GDP. Moreover, the strength of a currency is the true indicator of a country's economic health which can be analysed by factors such as CPI, Inflation, Retail sales, industrial production and many more. These factors can be used to perform fundamental analysis of a currency pair.

You described everything perfectly, however if I wouldn't have any knowledge in economy, then I perhaps would start from the very beginning in this field. Everything in economy is mutually connected, as well as in any other sphere. Hence, people who have no idea about economy at all, should start from the very beginning. I personally believe that it's not difficult to learn all these notions and understand why these notions are mutually conneted, however it may seem complicated for some people. If you understand that it's too hard for you, then try to do technical analysis, everything is described there in details.