Forex Strategy Trading Hints: How to Employ Forex News Releases to Trade the Markets

Fundamental analysis is the research of how the global events and news affect the currency markets.

In this edition of my Forex strategy trading Hints I will be teaching you how I you can use fundamental indicators to help you take better trading decisions.

The use of fundamental analysis in the foreign currency market is done by utilizing economic indicators. These fundamental indicators provide you with economical conditions of a country that can assist you to assess the state of a country’s currency.

Economic indicators are available through several sectors of a country’s government and private companies. This information is evaluated by foreign exchange traders to predict the direction of the currency exchange market. Foreign exchange economic indicators are offered at determined times and dates, and are followed by most passionate currency exchange traders.

Because so many investors are looking at them, fx economic indicators have an enormous impact on the exchange rates of the currencies that are traded in the foreign exchange market.

Almost all of Forex traders do not use fundamental analysis because economic indicators seem very hard to them.

Though, using fundamental analysis and following economic indicators can be a whole lot simpler when you follow easy guides that will keep you updated with the Forex economic indicators with no trouble.
How to Start Using Forex Economic Indicators

It is beneficial to keep a log of all the important Forex economic indicators’ release dates. Keep a log or register to one of the economic journal services that are available on the net.

What's more, you should employ and follow economic indicators that are related to the currencies you trade. Each currency belongs to a different country and in consequence the economic indicators will be different for each currency.

You will likewise have to learn what each indicator means and how it will affect a currency’s health.

The primary principle behind Forex fundamental analysis is that if a country’s economy is doing good its currency will go up in value and if the economy is doing bad then their currency will devalue and its price will go down.
The Most Significant Fundamental Forex Indicators

As I mentioned before each currency will have different economic indicators and the date and time when they are released are different. It is now time to talk about the most popular fundamental indicators that each and every foreign currency exchange trader should pay attention to.

The Treasury International Capital: The treasury international capital or TIC follows the flow of treasury and agency securities. The basic principle behind this indicator is that a higher than average reading is positive (or bullish) for the USD, while a a lower reading is negative (or bearish).

Durable goods: This is released monthly by the Bureau of Census and reflects new orders placed with domestic manufacturers for delivery in a near future. The basic principle behind this indicator is that a increased reading is positive (or bullish) for the USD, while a decreased reading is negative or bearish.

Consumer Price Index (CPI) Ex Food & Energy: This indicator measures and analysis the weighted average of prices of consumer goods and services such as transportation, food, and medical care. This indicator is used to measure the level of inflation of a country. The basic principle behind this indicator is that a high reading is seen as positive (or bullish) for the USD, while a decreased reading is seen as negative (or Bearish).

There are quite a lot of other Economic indicators that can be used to evaluate the Forex and you should spend some time examining the ones that affect the currency pairs you trade. I hope I was able to provide you with helpful information in this segment of my Forex strategy trading helpful hints.

Best regards,

Jay Molinar
Expert foreign exchange trader & trainer