Friday, October 3, 2008

Fundamental Analysis

Forex market moves when news are released. That's fundamental analysis. Forex trading during fundamental news can be like riding the rapids in a river. Currency moves around 100pips to 200pips or more. Forex trading during non-fundemantal days can be like riding in the calm part of the river. Currency only moves around 50pips to 100pips. As most of the currencies are paired with USD, I'll show the 10 most important fundamental announcements:

1. Non-farm payroll.
2. PMI
3. CCI
4. CPI
5. Existing Home Sales
6. New Home Sales
7. GDP
8. PPI
9. Employment
10. Durable Goods



You need to check on the date and time release of news before trading. This is the best site I check before placing any trades: http://www.forexfactory.com/calendar.php
You can check on the US dollar index to have a glimpse of the strength of the currency : http://www.fxstreet.com/rates-charts/usdollar-index/
Apart from the above news, other live news affects currency too. Some of the unpredicted news which triggers huge movements of forex trading are war, hurricane, terrorist attacks, oil prices etc.

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