Understanding Fundamental News Terms in Forex trading.

Understanding Fundamental News Terms in Forex trading.

Sometimes we feel confused about what analysis we will use in our forex trading. So, this reading will discuss how to read news as a fundamental analysis on forex. Including economic indicators and how to read them.

Next articles : 5 Mandatory Rules for Trend Forex Traders

What are the fundamental indicators in forex trading?

Fundamental indicators are world economic news that can affect currency movements. So, To be successful in the world of forex trading business, we must understand and memorize how to read forex economic news. The point is for fundamental observations. And Now, to become a fundamentalist, forex traders must have broad insight in interpreting trade economy reports.

forex trading

Forex trading

If you are a person who uses forex as an investment, the fundamental term is very important. A certain news will greatly affect the movement of a pair of currencies. Here are some terms that are often mentioned in economic news. Everything is explained in a language that can facilitate you in learning it. And, By understanding the contents of the released report, it is desirable for forex traders to be able to do dynamic on the forex market.

Unemployment Change

This is an indicator that measures the value of unemployment over the past month. So, If the value of the United States (US) Unemployment Change rises, the value of the USD will decline.

Reserve Bank of Australia (RBA)

The policy of the Australian central bank is able to change interest rates.

GDP (Gross Domestic Product)

In Indonesian it is called gross domestic product (GDP). This is the size of all production volumes in a region. Information from GDP will greatly influence the flow of a nation’s money currency.

Retail Sales

Sales of goods will greatly affect the selling power of consumers.

Commodity Prices

An indicator that measures the value of growth in export commodity prices.

Read Also : Trading With News Strategy: Let’s Start With This Step!

PMI

The PMI is a composite index of the five main indicators. So, This includes several elements, namely: order, inventory level, production, delivery, and labor. If the index number above 50 means the industry is experiencing expansion. And if a number below 50 means contraction. In measuring production levels, this index is measured as a key indicator and is considered the number one indicator.

Next article : How to Interpret the Price Model in Forex Trading

Pending Home Sales

An indicator that calculates the growth of home bookings in a country.

forex trading

Nonfarm

An indicator that measures national production of goods and services outside the agricultural sector.

Read Also : How News Broadcasts can affect Forex Trading

Unemployment Claim.

Unemployment Change is an indicator that measures the value of unemployment over the past month. So, If the value of the United States (US) Unemployment Change rises, the value of the USD will decline.

Consumer Price Index (CPI)

Indicator that measures the level of increase in goods and services imposed on consumers. The increase in prices of goods and services will ultimately increase inflation. So, in the end, it usually must be balanced by raising interest rates. Likewise the increase in the interest rate will result in the strength of the currencies of participating countries.

forex trading

Import Price Index

An indicator that calculates the percentage increase in price (inflation) of imported goods.

Prelim UoM Consumer Sentiment

An indicator that calculates a composite index rate based on a survey conducted on US consumers.

Read Also : How to use the Ichimoku Kinko Hyo indicator