Forex 101 Fundamental Analysis – https://RandallOrton.com
Forex 101 Fundamental Analysis strategies consist of studying economic factors of a country to forecast the future value of its currency. This includes, but is not limited to: economic conditions, monetary policy, etc.
Fundamental analysis focuses on studying economic, social, and political factors that drive supply and demand. Some important indicators are interest rates, inflation, and unemployment. Political decisions are also important.
Below you can find some of the most important fundamental analysis indicators and their definition. You can learn more about these indicators and how they are used at www.investopedia.com.
Producer Price Index – PPI
A family of indexes that measures the average change in selling prices received by domestic producers of goods and services over time. PPI measures price change from the perspective of the seller.
Consumer Price Index – CPI
A measure of price changes in consumer goods and services such as gasoline, food, and automobiles. Sometimes referred to as “headline inflation”.
Gross Domestic Product – GDP
The monetary value of all the finished goods and services produced within a country’s borders in a specific period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments, and exports less imports that occur within a defined territory.
You must pay attention to financial news when you trade using a fundamental analysis trading system. You can find financial news on the following websites. .
1. www.bloomberg.com
2. www.businessweek.com
3. money.cnn.com
4. www.economist.com
5. news.ft.com/markets/currencies
6. www.fxstreet.com
Fundamental analysis is very important as you can see, but it is also important to implement some other techniques on your trading strategies. You can learn about other aspects of Forex trading like technical analysis and money management in my other videos on this series.
00:00:00 Introduction to Forex Fundamental Analysis
00:01:00 Key Indicators of Fundamental Analysis
00:03:11 Importance of Financial News in Fundamental Analysis
00:04:11 Summary and Additional Resources
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