I have a question about the use of fundamental analysis on currency. Can anyone suggest the type of KEY economic factors like GDP, CPI, etc that will hint at or even directly show influences of currency. A link or a sticky would be good too. thanks
I hope you like reading, becaus this one is lengthy, but if you really are interested it’ll help.
I posted the japan one, but it gives the other currencies’ economic events that are key as well just in that top left box.
Have a good one eh!
Decent link, shadow. A thread with links like this is not a bad idea either.
Here are some ideas
the CPI (Consumer Price Index) is derived from analysing the price change in a basket of good from month to month. The good are just general house hold goods and the number is shown as the percentage price change.
The higher prices of goods get the more inflation the country is suffering from.
The RED ZONE for the CPI is +1.5% when it reaches 1.5% banks start considering a rate hike which makes the currency value go up. So if a CPI comes out high traders will fear a rate hike by the central bank and will buy the currency.
The consumer confidence report is a survey of consumers current confidence in the economy. If consumers are making enough money to spend on goods and services plus have a little elft over they will be happy. The theory is that if consumer confidence is high it means theya re spending more so that could mean the retail sales report will be high.
Retail sales is a report that calculates the amount of good and services sold by retail stores to consumers. If consumers are spending more retail sales could come out higher.
I have more but I cant think of any right now.