What Is Fundamental Analysis in Forex Trading?

GDP is considered the broadest measure of a country’s economy, and it represents the total market value of all goods and services produced in a country during a given year. Since the GDP figure itself is often considered a lagging indicator, most traders focus on the two reports that are issued in the months before the final GDP figures:…

The CPI measures change in the prices of consumer goods across over 200 different categories. This report, when compared to a nation’s exports, can be used to see if a country is making or losing money on its products and services. Be careful, however, to monitor the exports — it is a popular focus with many traders because the…

Traders in the foreign exchange market (forex) rely on the same two basic forms of analysis that are used in the stock market: fundamental analysis and technical analysis. The uses of technical analysis in forex are much the same: the price is assumed to reflect all news, and the charts are the objects of analysis. But unlike companies,…

This report shows a change in the production of factories, mines, and utilities within a nation. It also reports their “capacity utilization,” the degree to which each factory’s capacity is being used. It is ideal for a nation to see a production increase while being at its maximum or near-maximum capacity utilization. Traders using this…

Foreign exchange, or forex, trading can be highly profitable, but it also entails risks that are not present in other markets. Unlike domestic stock trading, forex traders are also exposed to currency risk when the value of a foreign currency goes up or down. In addition, forex markets also offer extremely high leverage, which can…

Economic indicators are reports released by a government or private organization that detail a country’s economic performance. These reports directly measure different aspects of a country’s economic health, but remember that many factors and policies will affect a nation’s economic performance. Economic reports are released at scheduled times, providing the market with an indication of…