Beginner Fundamental Analysis
Consumer price index (CPI) is a measure of inflation within a region that calculates the average change in the cost of goods and services.
A consistent set of metrics is used when calculating CPI, including – Transport, energy, food, housing, medical care, education, and recreational spending.
GDP stands for gross domestic product, representing the total value of goods and services produced within a country.
The standard formula used to calculate GDP is the following:
Gross domestic product = Consumption + Government spending + Investments + (Exports – Imports)
If this week has taught me anything, it’s that you can never be too sure because you never know what’s coming or when it is coming. This past week we witnessed the US elections, and with that came volatility.
As traders, we love volatility. We love movement in a bearish or bullish direction.
Early on in my Forex trading journey, I never followed Economic events to the tee. I genuinely felt it was useless, and so I left that out of my trading strategy altogether.
One day, I found myself on top of the moon because I had a couple of GBP trades open, which were going incredibly well until…
The Non-Farm Payrolls (NFP) report is an economic indicator measuring employment change within the United States.
Each month, NFP shows the net change in the number of paid employees, excluding specific sectors like the farming industry and non-profit organizations.
Today I come before you as a wounded soldier. This week, more specifically at the time of writing this article, I was caught asleep at the wheel. It happens to the best of us and it’s important to recognize when you are out of balance as a person because your imbalance, whether it’s physical, emotional, or mental, affects your trading results directly…
In this article, we will discuss a few key pointers that every Forex trader needs to know about his or her currency pairs. So let me start by asking you a few questions… How well do you know your pairs; EURUSD, GBPUSD, USDJPY?
Seriously how well?! Do you know what happened 2 weeks ago with cable? Or why the Euro gained so much strength over the past week? Or what price your favorite pairs are sitting at right now?
In Forex trading the economic calendar refers to scheduled economic releases that have an impact on a currencies value and/ or the market as a whole; these calendars come packed with other useful information for traders.
Economic releases have an impact on trader sentiment and valuation, the influence on price is usually short term but, in significant cases, the impact can be long term.
Major global events can affect currency valuations; therefore most traders keep a keen eye on any significant worldwide developments and how these can impact their trading.
Why do global events affect Forex? Major worldwide developments influence the supply and demand of currencies.
Fundamentals, what are they and what do they mean? Why do some consider them as evil and others as good? Well, let’s dive into all these questions and understand what part they play in the forex markets.
Now it is key for me to highlight that fundamental analysis is a way of looking at the markets through the understanding of economic, social and political forces that may cause the market to react a certain way