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Forex Strategy Trading Helpful Hints: How to Work With Forex News to Trade the Forex Markets

Fundamental analysis is the research of how the worldwide events and news influence the currency markets.

In this edition of my Forex strategy trading Hints I will be teaching you how I you can use fundamental indicators to help you take better trading decisions.

The implement of fundamental analysis in the Forex is done by using economic indicators. These fundamental indicators provide you with economical elements of a country that can help you to assess the robustness of a country’s currency.

Economic indicators are available through various areas of a country’s government and private companies. This information is researched by FX traders to estimate the direction of the currency exchange market. Forex economic indicators are published at determined times and dates, and are followed by most genuine foreign currency traders.

Given that so many investors are looking at them, Forex economic indicators have an enormous effect on the exchange rates of the currencies that are traded in the foreign exchange market.

Most of foreign exchange market do not use fundamental analysis because economic indicators seem tough to them. 

Nonetheless, utilizing fundamental analysis and following economic indicators can be a whole lot easier when you follow easy guides that will keep you up to date with the Forex economic indicators with no trouble.


How to Start Using Forex Economic Indicators

It is very important to keep a log of all the important Forex economic indicators’ publish dates. Keep a log or register to one of the economic journal services that are available on the net.

Aside from that, you should utilize and follow economic indicators that are related to the currencies you trade. Each currency belongs to a different country and therefore the economic indicators will be different for each currency.

You will furthermore need to learn what each indicator means and how it will influence a currency’s strength.

The primary concept behind Forex fundamental analysis is that if a country’s economy is doing good its currency will go up in value and if the economy is doing bad then their currency will devalue and its price will move down.


The Most Important Fundamental Forex Indicators

As I mentioned before each currency will have distinct economic indicators and the date and time when they are released are different. It is now time to talk about the most widely used fundamental indicators that each foreign exchange trader should pay attention to.

The Treasury International Capital: The treasury international capital or TIC follows the flow of treasury and agency securities. The primary principle behind this indicator is that a increased reading is positive (or bullish) for the USD, while a low reading is negative (or bearish).

Durable goods: This is released monthly by the Bureau of Census and reflects new orders placed with domestic manufacturers for delivery in a near future.  The basic principle behind this indicator is that a higher than average reading is positive (or bullish) for the USD, while a low reading is negative or bearish.

Consumer Price Index (NYSEARCA:CPI) Ex Food & Energy: This indicator measures and analysis the weighted average of prices of consumer goods and services such as transportation, food, and medical care. This indicator is used to measure the level of inflation of a country. The basic principle behind this indicator is that a higher than average reading is seen as positive (or bullish) for the USD, while a decreased reading is seen as negative (or Bearish).

There are many other Economic indicators that can be used to analyze the Forex market and you should spend some time studying the ones that affect the currency pairs you trade. I hope I was able to present you with helpful information in this portion of my Forex strategy trading tips and hints.

To your success,
Jay Molina
Pro currency trader & coach