Fundamental analysis believes that prices move because of the news and government policy, and market response to the news released. In fact the fundamental news like this that really drive the price in the forex market. Any news that has been or that will emerge from the market or cause a reaction that led traders to price changes. That is, news that appeared to make changes to the price of the currency of the country. This change also eventually encourage the government as holder of the monetary authority determines the economic policies that appear next new fundamental news. So forth cycle is spinning.
For a fundamental analyst, speed, accuracy and ability to predict news (forecasting) the market reaction to news released a vital component of the absolute must-have. Without the above factors, it is difficult for a fundamental analyst utilizing the existing news in order to gain profit
Here's some news that affects the movement of the terms of the currency in the forex market:
Producer Price Index (PPI)
It is an economic indicator which measures the rate of inflation of goods purchased by manufacturers or manufacturing companies (producers of goods). If the rate of inflation for goods and services purchased by manufacturers rose, then the manufacturer will also be raising the price of goods and services to cover rising raw material prices that have been purchased. If the price of goods and services rose then that as the start trigger inflation and the government together with the central bank will try to raise interest rates. The impact of the news producer price index (PPI) is "If the U.S. PPI rises then the USD will rise."
Consumer Price Index (CPI)
Is the information / news and even be used as an indication that measures the rate of increase in goods and services charged to consumers. Increase in prices of goods and services in turn will increase inflation, which in turn usually be in Balance with raising interest rates. The increase in interest rates to strengthen the currency of the country concerned.
The impact of the news consumer price index (CPI) "If the CPI rises, the value of Swiss currency CHF (Swiss Fran) will increase." And vice versa "If the value of the Swiss CPI down the value of CHF currency will weaken."
Retail Sales
Is an indicator that measures sales growth in the retail sector in a country.
The impact of retail sales news was "If the value of U.S. Retail Sales rose then the USD will rise."
Nonfarm Employment Change (Non-farm payrolls)
Is an indicator that calculates the number of new workers from non-agricultural sector who work either full-time or part-time receiving wage / salary of some 500 formal private and public companies.
Producer Price Index (PPI)
It is an economic indicator which measures the rate of inflation of goods purchased by manufacturers or manufacturing companies (producers of goods). If the rate of inflation for goods and services purchased by manufacturers rose, then the manufacturer will also be raising the price of goods and services to cover rising raw material prices that have been purchased. If the price of goods and services rose then that as the start trigger inflation and the government together with the central bank will try to raise interest rates. The impact of the news producer price index (PPI) is "If the U.S. PPI rises then the USD will rise."
Consumer Price Index (CPI)
Is the information / news and even be used as an indication that measures the rate of increase in goods and services charged to consumers. Increase in prices of goods and services in turn will increase inflation, which in turn usually be in Balance with raising interest rates. The increase in interest rates to strengthen the currency of the country concerned.
The impact of the news consumer price index (CPI) "If the CPI rises, the value of Swiss currency CHF (Swiss Fran) will increase." And vice versa "If the value of the Swiss CPI down the value of CHF currency will weaken."
Retail Sales
Is an indicator that measures sales growth in the retail sector in a country.
The impact of retail sales news was "If the value of U.S. Retail Sales rose then the USD will rise."
Nonfarm Employment Change (Non-farm payrolls)
Is an indicator that calculates the number of new workers from non-agricultural sector who work either full-time or part-time receiving wage / salary of some 500 formal private and public companies.
The impact of nonfarm employment news of this change "If the value of Non-Farm Employment Change the U.S. rose then the USD will rise."
This news often creates a big surprise for traders and investors on investment because of the rise and fall Forex currency pairs related to the USD.
Gross Domestic Product (GDP)
Is an indicator that measures the market value of goods and services produced by a country, regardless of nationality companies that produce goods or services. GDP consists of 4 main components namely: the level of consumption, investment, government purchases, and net total exports.
This news often creates a big surprise for traders and investors on investment because of the rise and fall Forex currency pairs related to the USD.
Gross Domestic Product (GDP)
Is an indicator that measures the market value of goods and services produced by a country, regardless of nationality companies that produce goods or services. GDP consists of 4 main components namely: the level of consumption, investment, government purchases, and net total exports.
The impact of news of gross domestic product (GDP) is "If the value of Canada's GDP rose CAD currency values will rise."
