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

Fundamental analysis is the investigation of how the International events and news affect the currency markets.

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

The use of fundamental analysis in the Forex is done by utilizing economic indicators. These fundamental indicators provide you with economical aspects of a country that can enable you to assess the robustness of a country’s currency.


Economic indicators are available through various areas of a country’s government and large companies. This information is assessed by currency traders to predict the direction of the currency markets. Foreign currency economic indicators are available at determined times and dates, and are followed by most passionate Forex traders.

Since so many investors are looking at them, foreign currency economic indicators have a tremendous effect on the exchange rates of the currencies that are traded in the foreign exchange market.

The vast majority of foreign exchange market do not use fundamental analysis because economic indicators seem very hard to them. 

Nevertheless, making use of fundamental analysis and following economic indicators can be a whole lot simpler when you follow very simple guides that will keep you updated with the Forex economic indicators with no trouble.


How to Start Using Forex Economic Indicators

It is very important to keep a log of all the important Forex economic indicators’ release dates. Keep a log or sign up to one of the economic journal services that are available on the internet.

Along with that, you should use and follow economic indicators that are related to the currencies you trade. Each currency belongs to a different country and as a result the economic indicators will be different for each currency.

You will In addition to that need to learn what each indicator means and how it will have an effect on a currency’s strength.

The primary concept behind Forex fundamental analysis is that if a country’s economy is doing well 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 said before each currency will have distinct economic indicators and the date and time when they are published are different. It is now time to talk about the most prominent fundamental indicators that each foreign currency exchange trader should pay attention to.

The Treasury International Capital: The treasury international capital or TIC monitors the flow of treasury and agency securities. The basic principle behind this indicator is that a high reading is positive (or bullish) for the USD, while a low 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 low 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 increased reading is seen as positive (or bullish) for the USD, while a low reading is seen as negative (or Bearish).

There are many other Economic indicators that can be used to analyze the Forex market and you should spend some time examining the ones that impact the currency pairs you trade. I hope I was able to offer you with useful information in this segment of my Forex strategy trading secrets.