Fundamental Education

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

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.

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.

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