Fundamental analysis help for a newbie

Hi everyone,

Following some good advice I got on babypips forum, I am going to, as a newbie, focus on EUR/USD.

I think I am up to speed on the technical and sentiment analysis; however my fundamental analysis could do with some improving.
For the fundamental analysis, I need to know key figures which will allow me to assess the news and try to predict movement, so far the key figures that I can think off are:

EUR:

  • Unemployment
  • Inflation
  • Interest rates
    USD:
  • Unemployment
  • Inflation
  • Interest rates
  • Non-farm payrolls

Have I missed any out? Do you usually trade with those in mind? Or do you only look at the economic calendar for the week with the forecasts?

Cheers

In terms of the most significant high impact news, you have nailed it. I would maybe add GDP metrics and BOE/ECB speeches to the list.

Out of my not so significant experience on Live trading I could suggest to pay extra attention if you are going to try news trading. Especially during the news with high impact on the market as those you have listed slippage and spread widening during the release are very common. So, prepare yourself for not so great executions sometimes :slight_smile: However it is always exciting trading the NFP!
Cheers and good luck

Yes of course, fundamental analysis adds to the strength or the weakness of the currency pair. Thus, if the fundamental news is positive is adds towards the positive movement of the currency pair. While on the opposite side, when the news is negative, it adds to the negative movement or trend of the currency pair.

Therefore, if a newbie wants to start trading with fundamental analysis, it is important that the investors makes the complete analysis about the news and thus, makes the best buying or selling decision.

Yes about fundamental analysis, this is important for trader there are news that included as high impact news often many trader reading news update on calendar economy, sometime I am also trying to monitoring when news NFP was released but often making pair being random

Nice to see that you are on the right track! Yes, you have marked all of important events of news trading! But don’t forget to point out important swing points of market, you may know technical analysis is the best tool for identifying good swing points of market! Basically, for being a successful Forex trader you need to focus on both kind of market analysis, best of luck!

Yes technical analysis is best and easy for new traders. They can understand fundamentals if do some effort but not trade as a starter on fundamental analysis. I prefer technical analysis for beginners. With some experience they can choose best for them what type of analysis suits them for their trading and needs.

Yes definitely, fundamental analysis helps the traders. Release of major news events significantly affects the price movements. You have figured out the key factors which affects the market and other than that you can look for the FOMC meeting minutes, speech from Fed officials & ECB monetary policy meetings. However as other says I would also suggest that combination of both the fundamental and technical analysis can bring about fruitful results to your trading.

actually a newbie should first learn the basic concepts of learning forex, the terms, the terminal. and then switch to analysing, ideally it’s best to use technical and fundamental analysis.