forex trading – Economic indicators for Forex
To negotiate on Forex and more generally to operate in the financial markets it is necessary to have at least a general smattering on the concepts related to the economy. It is true, to negotiate on binary options you can also follow only the signals of the appropriate software, but to optimize your activity, your efforts and get more gains is good and indeed recommended a deepening in the economic matter. In This portal we will not propose a whole university course of economics or finance, but we will give you the seeds that you will be free to plant to obtain good fruit. In This lesson we will discuss the so-called economic indicators, the so-called fundamentals. Have you ever heard of fundamental analysis? Below we will give some hints.
1 fundamental analysis, what is it?
2 Everyday life
3 The Rumour
Fundamental analysis, what is it?
Although the name may be awe-inspiring, we can assure you that this is a very fascinating topic. If you let yourself be overwhelmed by the dynamics of fundamental analysis, you will be able to find more and more passion for forex trading.
So let’s first see what it is.
The fundamental analysis, together with the “technical” analysis (which we will discuss later in the course), is the study aimed at designating the “right price” of a title taking into consideration the economic and financial aspects to which it refers.
Well, if for actions the fundamental analysis takes into account some aspects such as capitalisation, balance sheets and so on, in Forex the fundamental analysis takes into account different factors, or macroeconomic factors that can impact on a Particular country or community associated with a particular currency.
The factors taken into account for the fundamental analysis in Forex are visible in the everyday life. They can be seen in the economy, in house prices, in consumer prices, in the work that is missing. We can follow the news and have an idea of how the economy influences and manifests itself on the lives of all of us, and how it is virtually impossible not to follow it. And here we present another perspective: follow it to optimize your earnings. Not only from newscasts, but also from specialised newspapers like the sun 24 hours online or from the Republic Bloomberg. These are just examples: you can use the sources you want, as long as they are continuously updated and reliable. The upgrade, in trading, is crucial. The best results are achieved by taking advantage of the news and opening or closing positions accordingly. For example, if Dragons announces a cut in interest rates, this will certainly affect the exchange rate ratios with the EUR.
However it is not only the large bodies to influence the choices for Forex, but also the individual states, such as these days you have for the Jobs Act. The evaluations concerning the contractual conditions of the workers influence the savings and therefore the consumptions. The latter are fundamental to the macroeconomic well-being of a country, because they are affecting investment, then employment and still GDP.
In addition to the real facts, the fundamental analysis can also be made of particular considerations, which refer to the so-called “rumour”, or unofficial voices. These hints, which can sometimes be even simple predictions, often influence the performance of the securities and therefore the fundamental analysis could be considered to make certain corrections.
In the next lesson we will see what factors are taken into account in the fundamental analysis in Forex.