In forex trading, Fundamental Analysis is very easy to use. Mean is very easy to bring to our point or pip. Sure, we must be careful to choose an important news or not important news in the forex. Here is the news that has a major/high impact on the forex market movement.
- Average Earning Index: economic news is usually issued by the UK and Canada. AEI provides revenue information workers and its relation to the inflation rate through the other fundamental indicators of the so-called RPI (Retail Prices Index). If AEI increased faster than the RPI then this is an indication that wages increased faster than goods prices. This is good for the economy of a country but the negative impact is inflation. In forex trading, if inflation increases then the currency will tend to strengthen due to the increased interest rate expectations. Thus, it can be concluded if the AEI increase the currency will rise, too. AEI belong expected high volatility indicator.
- Chicago PMI (Purchasing Manager's Index): is a special fundamental indicators issued by the United States. Chicago PMI rose to give information or drop in the level of expenditure of purchasing managers in the city of Chicago that many of them are manufacturing industries. The rise of this indicator is an indication of the strengthening currency USD. PMI expected relatively high volatility indicator.
- Consumer Price Index (CPI): England and the United States is the country most often experience ups and downs of the currency is due to the CPI news. CPI is the inflation rate indiakator determinant in consumers' point. CPI itself helps determine how much consumer confidence in one month in making a purchase. If the CPI rises then the currency of the country concerned will also rise. Indicators classified as medium CPI expected volatility but if the CPI calculation is beyond the energy sector and the food CPI could be expected the high volatility of fundamental indicators such as the two sectors are the sectors most often changed from time to time. Regular CPI issued around the 13th of each month at 13:30 GMT.
- Gross Domestic Product (GDP): Almost everyone knows what's GDP. Bahasa Indonesian Gross Domestic Product. GDP is one indicator of fundamental importance in daily forex We. If GDP increased modestly the currency will strengthen because the production of a country also increased.
- Money Supply: This indicator measures the three things that the amount of money circulating in the community in the form of coins or paper, the amount of bank loans to the public and the amount of change in value of outstanding debt by the government. Rising Money Supply will usually lead to stronger currencies.
- Non-farm payrolls: This is one of the news of the most eagerly awaited by most of the fundamental traders. Non Farm Payroll (issued by the U.S.) appears once a month on Friday the first week. Non-farm payrolls measure the amount of government spending in the payment of salaries outside the agricultural sector compared to the previous month. Increased non-farm payrolls could result in stronger currencies drastically in a matter of tens to several hundred points. NFP can be classified so very high indicator of expected volatility.
- Producers Price Index (PPI): PPI is an indicator measuring the inflation rate as the CPI. The difference if the CPI was on the consumer side of the PPI measures the inflation from the producer level. The increase in raw material prices, transportation costs and various production components become part of the calculation of PPI. If the PPI increase the currency will be strengthened. PPI usually issued around the 11th of each month at 13:30 GMT. Relatively high PPI indicator voltility expected.
- Retail Sales: Total sales of goods recorded in the sector, but not including services for classified service measurement difficult. Retail Sales is one good indicator to measure the level of consumer spending. Usually bil AEI (Averaga Earning Index) experienced an increase in the Retail Sales will also increase because of rising wages must be followed by increased consumption. If Retail Sales up the currency will also rise in value. Retail Sales issued about the 12th of each month at 13:30 GMT.
- Trade Balance: is the difference between the value of exports minus its imports of a country. Minus value indicates greater import than its exports and vice versa if it shows positive espor greater than imports. Most countries that are expanding or developing country trade has a negative Trade Balance. However, in the money market, the more positive the value of the Trade Balance strengthened the currency of the country.
- ISM Manufacturing Index (ISM-MI): Insititute of Supply Management Manufacturing Index is the greatest indicator for measuring the fundamental indicators of manufacturing index. Issued on the first day of work hours each month, ISM-surver MI is the result of more than 20 manufacturing industries and 300 purchasing managers involved in America. How to reading more or less the same, if the ISM-MI increase in the currency of course those countries would be strengthened.
- Consumer Confidence Index (CCI): an indicator that measures the level of consumer confidence in 5000 that the survey and their views on future economic prospects. CCI issued every Tuesday at the end of the month at 15:00 GMT. When the CCI that means increased consumer confidence rose to the economic development and the resulting currency could rise. CCI classified as Moderate Expected Volatility indicator.
- Interest Rate Statement: Each month the Central Bank of each country are always announce interest rate policy the central bank as a benchmark for other banks in the country. Decision whether up, down or stay. Interest rates will ultimately determine the amount of deposit rates, credit, savings and other lending policy options in the banking sector in the country. Can be said interest rates policy is one of the final action of the Central Bank of the economic conditions that occurred in the country.
