Fundamental Point of Forex – Predictions of forex price movements can be reflected in economic, social and political conditions, a country. This condition greatly affects the value of the country’s currency. Countries that are economically, socially and politically strong will have higher currency values than other countries. There are 2 types of price movement analysis, namely fundamental and technical. In this article, I will discuss the fundamental point of view first.
Fundamental Point of Forex
To obtain fundamental data, a trader usually uses data and information provided by the mass media (through newspapers, internet, television, radio, etc.). The media usually adds reviews and price movements due to the influence of these indicators. Fundamental data is usually issued every month except Gross National Product (GDP) and Employee Cost Index published every four months. All fundamental data are published in pairs. The first number shows results last month, while the second number shows this month’s forecast. The official data figure for the current month.
Current month is the active month in which the data applies. For example, if a fundamental data is published monthly on the 1st week of October, the data is fully functional during October. Figures on fundamental data are displayed in pairs that show a change (good / bad) from the previous month’s value compared to the current month (or previous quarterly check with the current chess).
Fundamental Forex Indicator
- The Gross National Product (GDP)
- The Gross Domestic Product (GDP)
- Consumtion Spending
- Investment Spending
- Government Spending
- Net Trade
- Industrial Production
- Capacity Utilization
- Factory Orders
- Durable Goods Order
- Business nventories
- Producer Price Index (PPI)
- Consumer Price Index (CPI)
- Gross National Product Implicit Deflator
- Commodity Research Bureau’s (CRB) future index
Merchandise Trade Balance
- Consumer Spending Indicators
- Employment Cost Index (ECI)
- Retail Sales
- Consumer Sentiment
- Auto Sales
- Personal Income
Some fundamental factors that affect foreign exchange are
Financial factors are determinants of fundamental analysis, these factors involve a country’s financial policies, for example: export value, unemployment rate, etc.These factors affect the exchange rate of the country’s currency.
The size of the interest rate affects the value of the country’s currency and then affects the interest rate of credit and investor interest in investing in the country.
Social and Political Factors
The social and political changes of a country such as the replacement of the president, the minister’s cabinet, the level of security, prolonged demonstrations, etc. greatly influence the value of the country’s currency. The more stable the country is, the better the value of the currency.
Riots / Disasters
Factors that are unpredictable and very negatively influential are riots and natural disasters that occur in the country.
Fundamental Analysis Information Sources
The following are the fundamental sources that you can access, namely.
- forexnews.com, news that is presented 24 hours nonstop. This website will make it easier for you to see an overview of how news and central banks affect the forex market.
- gainscopefx.com/forex , forex trading strategy site to see their reviews of today’s price movements.
- The Economist
- Financial Times
- Federal Reserve Bank (BI Indonesia), each branch collects information about economic conditions in their respective regions. This information was obtained from the bank director’s report on the results of his interviews with entrepreneurs, economic experts, small and medium industry players, marketing experts, and other sources. Fundamental Point of Forex