How a currency moves

It’s very difficult to value a single company, what more for a whole country, right? A fundamental analysis is a very complicated factor in the forex market, and it is basically used in forecasting long-term trends alone.

On the other hand, some investors are trading short term strictly on news reports. There are variety of fundamental indicators of currency values on the loose at tons of different times.


Here is the following:

-Non-farm payrolls

-Purchasing Managers Index (PMI)

-Consumer Price Index (CPI)

-Retail sales

-Durable Goods

However, these examples are not just the fundamental factors existing. There are a lot of meetings that are providing quotes and commentary too. It could affect the market just like any reports released. These meetings are normally done in order to make discussions about interest rates, inflation and other issues that is affecting the value of currencies.

In addressing some issues, changes in wording are taking effect like some financial firms that are giving their comments on interest rates, such instances that are can result to a market volatility.  

By reading the news and assessing the commentary can help forex fundamental analysts to analyze and understand further the long-term market trends and investors for short-term is able to generate profit from extraordinary market events.

If a trader prefers to use a fundamental strategy, important events must be noted on the calendar in order to have a direction as soon as these reports are announced. Moreover, a personal broker may provide a real-time access of information.

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