1. Fundamental Analysis: by relying on the news/rumor going on the market.
2. Technical Analysis: by relying on graphs and mathematical formulas.
Fundamental Analysis: Fundamental analysis is the analysis that rely on news happening in the world market or which is being circulated in the market. The news was the driving force of the emotions of market traders to determine the value of a currency, stock, or other instruments.
One example is the increase in Central Bank interest rates by The Fed (the US central bank) can mean the rise of the Dollar. The rising price of petrolleum will raise the stocks related to commodities, etc. If you don't like complex analysis (count, graphs, etc), now it's time for you to learn fundamental analysis.
To learn fundamental analysis with true then you have to learn economics, financial in the macro. For example, why the increase in interest rates can make the value of the currency strengthened.
Here will not be explained in detail about the laws of economics. However there are a few news articles (economic indicators) that if you can use as reference. Political & economic condition is very influential to the American economy of the world, because it is news and economic data AS often as a reference by investors against the movement of major world currencies.
Economic indicators
|
Up/Down
|
US $
| |
| 1 | Average Earning |
Up
| Strengthened |
| 2 | Balance of Payment |
Up
| Strengthened |
| 3 | Budget Deficit |
Down
| Strengthened |
| 4 | Business Inventories |
Down
| Strengthened |
| 5 | Capacity Utilization |
Up
| Strengthened |
| 6 | Car Sales |
Up
| Strengthened |
| 7 | Chicago PMI (Purchasing Management Index) |
Up
| Strengthened |
| 8 | Constuction Spending |
Up
| Strengthened |
| 9 | Consumer Confidence Index (CCI) |
Up
| Strengthened |
| 10 | Consumer Credit (CI) |
Up
| Strengthened |
| 11 | Consumer Price Index (CPI) |
Up
| Strengthened |
| 12 | Consumer Spending (Expenditure) |
Down
| Strengthened |
| 13 | Cost of Living |
Up
| Strengthened |
| 14 | Current Account |
Down
| Strengthened |
| 15 | Corporate Profit |
Up
| Strengthened |
| 16 | Deflation |
Up
| Strengthened |
| 17 | Discount Rate |
Up
| Strengthened |
| 18 | Durable Goods Orders |
Up
| Strengthened |
| 19 | Economic Monetary System (EMS) |
Up
| Strengthened |
| 20 | Factory Orders |
Up
| Strengthened |
| 21 | Federal Budget |
Up
| Strengthened |
| 22 | Federal Reserve Fund |
Up
| Strengthened |
| 23 | Gross Domestic Product (GDP) |
Up
| Strengthened |
| 24 | Gross National Product (GNP) |
Up
| Strengthened |
| 25 | Housing Start |
Up
| Strengthened |
| 26 | Industrial Productions |
Up
| Strengthened |
| 27 | Invisible Trade |
Down
| Strengthened |
| 28 | Jobless Claims |
Down
| Strengthened |
| 29 | Leading Indicator |
Up
| Strengthened |
| 30 | Money Supply (M1, M2, M3, M4) |
Up
| Strengthened |
| 31 | National Association |
Up
| Strengthened |
| 32 | (NAPM) |
Up
| Strengthened |
| 33 | Non Farm Payrolls |
Up
| Strengthened |
| 34 | Personal Expenditure |
Up
| Strengthened |
| 35 | Personal Income |
Down
| Strengthened |
| 36 | Prime Rate |
Up
| Strengthened |
| 37 | Product Price Index (PPI) |
Up
| Strengthened |
| 38 | Public Sector Debt Repayment |
Up
| Strengthened |
| 39 | Retail Sales |
Down
| Strengthened |
| 40 | Trade Balance |
Up
| Strengthened |
| 41 | Trade Deficit |
Down
| Strengthened |
| 42 | Trade Weighted Index |
Down
| Strengthened |
| 43 | Unemployment Rate |
Down
| Strengthened |
| 44 | Unit Labour Cost |
Up
| Strengthened |
| 45 | Value Added Tax |
Up
| Strengthened |
| 46 | Visible Trade |
Up
| Strengthened |
Once you know it, the question is where can I obtain data or news. You don't have to fuss, with the development of the internet you can get data/news very quickly and easily. You can see it in: Forex Calendar
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