Money as we know it means different things to different people. For some, it is a means to an end, for others, it is a economic, it shows a status. For traders, money is the base of speculation. The fundamental analysis is a way to understand money and Forex in a better way by approaching economies. Have an idea about a falling or an uprising economy? Trade it and make money as a fundamental trader! Throughout history, money took various shapes. The easy of the money is what attracts people, not its quantity. For Forex traders, money represents pips. A pip is a difference between the ask and the bid price of a currency pair. The more pips a trader makes, the better. Moreover, the value of a pip shows the value of money based on the volume traded. We live in a world where fiat money is the backbone of the global financial system. On the other hand, central banks control fiat money. This makes central banks actions the cornerstone for money movement. When money currencies move, the Forex market calendar. The art of speculation, or trading, depends heavily on these movements, also called volatility spikes. Therefore, traders make use of anything possible to anticipate the moves of a central bank. Fundamental analysis in Forex trading strongly depends on the economic trading calendar. Fundamental analysis is the twin sister of technical analysis. That reason is part of Forex fundamental analysis. The FX news calendar is a listing of the economic events that influence currencies. Any trader should know the economic news for the period ahead because it is free information. To trade the Forex market in any trading week without knowing the news is foolish. Can you drive a car without seeing the road? The calendar shows news from the most important developed economies that influence the Forex market. News from the United States, Eurozone, United Kingdom, Japan, Australia and New Zealand are key. If you combine the currencies, the Forex dashboard appears. The currency pairs listed above, move based on the events listed Forex economic news calendar. When released, volatility rises. The economic news influences markets throughout the trading day and week, and even over the weekend. Such events may be Chinese data typically comes out on Sundays or economic summits, etc. Even political and geopolitical events, like referendums and G20, etc. The typical structure of any Forex market calendar looks like economic one above. From forex to right, the data to consider is the:. This one shows what every piece of economic data means and why it is important as a Forex economic calendar indicator. The red color signals an economic event at The data refers to the Canadian economy, thus affecting the Canadian Dollar CAD. Trade Balance is the name, and the forecasted value is CAD0. It represents calendar difference in value between imported and exported goods during the reported month. Hence, the bigger the data, the better for the currency. The frequency, historical data, the next release data and other details give the overall picture of the news. Such information exists easy any news part of the fundamental analysis of Forex market. Not all data in the economic calendar matters, though. Traders focus on having an educated guess about what the central bank will do next. Central banks meet regularly every month or every six weeks to set the interest rate on currency. Together with the interest rate, the overall monetary policy moves the Forex market. Trading is a game of probabilities. And in most of the times the market moves based on future expectations economic than the actual news. Between two central bank meetings, traders buy or sell currencies on future monetary policy expectations. Anything else is secondary. The red economic events are the ones that move the market. The rest of the data is secondary in importance. Above is the important fundamental analysis of Forex market. Traders focus on the red events and on what they tell calendar future monetary policy. What a central bank does with the interest rate on a respective currency is vital for that currency. All of them have a mandate forex set the monetary policy based on it. The pillar of their mandate is inflation. A classical mandate sounds like this: However, there is one central bank that has a dual mandate: The Federal Reserve of the United States. It is no wonder now why the jobs data in the United States, namely the NFP number is crucial for the dollar. Knowing what data follows easy a great advantage ahead of the market. The problem is that everyone looks at the same data. Yet, not everyone makes money in the Forex market. One way to succeed is to use the FX trading calendar correctly. Keep in mind that fundamental analysis in Forex trading is as important as technical analysis. Everyone knows these days that the ECB has a problem with inflation economic the Eurozone. More exactly, with the lack of it. In this relation, levels of 1. Higher inflation levels lead to the central bank raising rates. Contrary, lower inflation results in the central bank cutting rates. Higher rates mean a higher currency, while lower rates are bearish for a currency. It is clear now why inflation is so important for the central banks. Hence, it is one of the most important Forex fundamental analysis indicators. The end of October saw the inflation in the Eurozone unexpectedly falling. As per the economic calendar, the expected or forecasted value was 1. However, the actual number came at 0. Before moving forward, please refer to the mandate of a central bank: Hence, market participants started to sell the Euro in a frenzy. Because part of the fundamental analysis of Forex market is to trade expectations. In this case, based on the inflation data, expectations grew that the central bank will cut rates at the next meeting. Cutting rates are bearish for a currency and sellers step in. So they did, as the chart above shows. The next ECB meeting was after two weeks and traders sold the Euro on rate cut speculations. This is how the economic calendar Forex influences trading decisions. Forex the next two weeks, all Euro pairs suffered across the dashboard. No other news part of any economic calendars mattered anymore. The ECB did deliver. The central bank cut the interest rate, and the EURUSD dropped like a rock: However, the lows in that day turned out to be the lows for a long period ahead. The explanation comes from the press conference. A press conference follows forty-five minutes after every ECB meeting. The President reads the statement, and press representatives ask questions. During the press conference, the ECB President Mario Draghi supported the rate cut. However, he added that the ECB expects inflation to pick up next year. Because of that message, traders focused, yet again, on expectations. It turned out that was the low on the EURUSD pair for quite some time moving forward. So, bullish for the U. Traders simply disregarded the data and before you know the pre-ECB highs disappeared. So powerful the fundamental analysis in Forex is. Part of understanding the fundamental analysis Forex market moves upon is to know the players. Retail traders represent less easy six percent of the Forex market. The rest are big commercial banks, Forex brokers, liquidity providers, investment funds, and so on. The last decades brought a shift in the trading industry. Technological advances made room for calendar of the most powerful industries of them all: HFT stands for algorithmic trading. The Forex calendar news is the reason why these robots trade. They buy or sell based on the difference between the actual and forecast forex of the economic calendar Forex news. Buying or selling happens in a blink of an eye. This is why the market moves so aggressively. This happens in less than a second after the forex calendar FX news comes out. The chart above is only an example of how a Forex fundamental analysis strategy might work. Instead of following a technical trend, traders follow a fundamental one after they learn Forex fundamental analysis. You should simply add your details and you will be able to play the video for FREE! Central banks are the ones that dictate the value of money. Any piece of economic data is important. Especially the one that gives an idea about what a central bank might do next. Any speech, interview, red economic event or not, matter. There are other trading calendars to consider, though. Fundamental analysis is part of the decision-making process of buying or selling a currency pair. Together with technical analysis, they show the reason why the market moves and where it goes. One cannot tell which is more important. Technical analysis shows support and resistance levels. Targets for the next trade, together with stop loss levels. The fundamental analysis puts a reason behind a move. Therefore, traders should consider them both to make profit. Damyan is a fresh MSc International Management from the International University of Monaco. During his bachelor and master programs, Damyan has been working in the area of financial markets as a Market Analyst and Forex Writer. He is the author of thousands of educational and analytical articles for traders. When being in bachelor school, he represented his university in the National Forex Trading Competition for students in Bulgaria and got the first place among other traders. He was awarded a cup and a certificate at an official ceremony in his university. Forexboat Pty Ltd ABN: Any information or advice contained on this website is general in nature only and does not constitute personal or investment advice. We will not accept calendar for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. You should seek independent financial advice prior to acquiring a financial product. All securities and financial products or instruments transactions involve risks. Please remember that past performance results are not necessarily indicative of future results. The information on this site may be accessed worldwide however it is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local easy or regulation. Forum Pricing Features login sign up. Home Our Blog Trading Forex with Fundamental Analysis and Economic Calendar Trading Forex with Fundamental Analysis and Economic Calendar Damyan Diamandiev May 6, No economic. Introducing the Forex Economic Calendar Fundamental analysis is the twin sister of technical analysis. Explaining the Forex Economic News The economic news influences markets throughout the trading day and week, and even over the weekend. What are you waiting for? Economic Calendar Economy Fundamental Analysis News Trading share This: Damyan Diamandiev Damyan is a fresh MSc International Management from the International University of Monaco. Forex Trading for Beginners 3 Course: MQL4 for Complete Beginners 45 Course: Strategy Tester for Beginners 8 FOREX 48 Forex Stategy 12 Forex Strategy 34 Forex Trading for Beginners 39 Forex VPS 1 Fundamental Analysis 1 Interviews 1 MQL4 2 Uncategorized Secrets of Forex Breakout Trading Finally Revealed June 15, Forex RSI Technical Indicator Strategy Explained June 8, Learn the Top-5 Forex Trading Techniques. Enter your email below: Learn the 3 Forex Strategy Cornerstones. Enter your email address below: Get your Super Smoother Indicator!
ARCHIVE Why Is The Economic Calendar So Important To Traders?
ARCHIVE Why Is The Economic Calendar So Important To Traders?
As with any technology, there is room for improvement such that these systems can be better utilized to benefit the wind industry.
As much as it has impact me, it has impacted the entire nation.