Fundamental Analysis
There are two types of analysis commonly used by traders, namely:
1. Fundamental analysis: to rely on news / rumors in the market.
2. Technical analysis: by relying on charts and mathematical formulas.
Fundamental analysis:
Fundamental analysis is the analysis that relies on the news happening in the world market. Or that was circulated in the market. This news content can drive a market trader’s emotions to determine the value of a currency, equity or other instruments. One example is the Central Bank rate hike by the Fed (U.S. central bank) can mean a stronger dollar. Rising prices will hoist petroleum stocks related to commodities and other things. If you do not like the analysis of complex-complicated (count, graph, etc.), then it is now time for you to learn this fundamental analysis.
To learn fundamental analysis correctly then you should study economics, the financial macro, for example why rising interest rates can make the value of the currency to strengthen. Here will not be described in detail about the economic laws. But there is some news (economic indicators) that if you can use as a reference.
Political & economic conditions of Americans were very influential to world economic conditions; therefore the news and U.S. economic data is often used as a reference by investors against major world currency movements.
Economic Indicators Increase / Decrease U.S. $
1 Average Earning Rise Stronger
2 Balance of Payment Rise Stronger
3 Budget Deficit Down Stronger
4 Business Inventories Down Stronger
5 Capacity Utilization Rise Stronger
6. Car Sales Rise Stronger
7 Chicago PMI (Purchasing Management Index) Rise Stronger
8 Constuction Spending Rise Stronger
9 Consumer Confidence Index (CCI) Rise Stronger
10 Consumer Credit (CI) Rise Stronger
11 Consumer Price Index (CPI) Rise Stronger
12 Consumer Spending (Expenditure) Down Stronger
13 Cost of Living Rise Stronger
14 Current acount Down Stronger
15. Corporate Profits Rise Stronger
16 Deflation Rise Stronger
17 Discount Rate Rise Stronger
18 Durabel Goods Orders Rise Stronger
19 Econimic Monetary System (EMS) Rise Stronger
20 Factory Orders Rise Stronger
21 Federal Budget Rise Stronger
22 Federal Reserve Fund Rise Stronger
23 Gross Domestic Product (GDP) Rise Stronger
24 Gross National Product (GNP) Rise Stronger
25 Housing Start Rise Stronger
26 Industrial Productions Rise Stronger
27 Invisible Trade Down Stronger
28 Jobless Claims Down Stronger
29 Leading Indicators Rise Stronger
30 Money Supply (M1, M2, M3, M4) Rise Stronger
31 National Association Rise Stronger
32 (NAPM) Rise Stronger
33 Non-Farm Payrolls Rise Stronger
34 Personal Expenditure Rise Stronger
35. Personal Income Down Stronger
36 Prime Rate Rise Stronger
37 Product Price Index (PPI) Rise Stronger
38 Public Sector Debt repayment Rise Stronger
39 Retail Sales Down Stronger
40 Trade Balance Rise Stronger
41 Trade Devicit Down Stronger
42 Trade Weighted Index Down Stronger
43 unemployment rate Down Stronger
44 Unit Labour Cost Rise Stronger
45 Value Added Tax Rise Stronger
46 Visible trade Rise Stronger
Once you know all this, the question is where I can obtain the data or news. You need not to be sweat. With the development of the internet nowadays, you can get data/news quickly and easily.
You can see it in: forex calendar