Currency Services

Fundamental analysis differs four currency zones. Dollar zone includes Amercan countries with the USA at the head; sterling zone includes Great Britain and its former colonies. Yen zone includes all Asian countries with Japan at the head. Euro zone includes countries in western, central and partly east Europe with Germany at the head.

Analyzing a situation on the market you should pay attention to the following indicators:

Gross national product.

The importance of the indicator: 1
Where it is published: Bureau of economic analysis of the Trade Department in the USA.
It is available: on the 20th-30th of every month.
Periodicity: quarterly report (every month).
Volatility: average.
Response of the markets: GNP ^ = ^ US dollar rate
GNP v = v US dollar rate
Note: one of the most important economic indicators, as it represents economic activity as full as it is possible.

Gross domestic product.

The importance of the indicator: 1
Where it is published: Bureau of economic analysis of the Trade Department in the USA.
It is available: on the 20th-30th of every month.
Periodicity: quarterly report (every month).
Volatility: average.
Response of the markets: GDP ^ = ^ US dollar rate.
GDP v = v US dollar rate.
Note: one of the most important economic indicators, as it represents economic activity as full as it is possible.

Trade balance.

The importance of the indicator: 1
Where it is published: Bureau of economic analysis of the Business Department in the USA.
It is available: on the 15th-17th of every month.
Periodicity: every month.
Volatility: moderate
Response of the markets:
Trade balance ^ = ^ US dollar rate.
Trade balance v = v US dollar rate.

Employment and unemployment.

The importance of the indicator: 1
Where it is published: Bureau of the labor statistics of the American State Labor Department.
It is available: on the 1st-7th working day of every month.
Periodicity: quarterly report (every month).
Volatility: average.
Response of the markets:
Payroll employment ^ = ^ US dollar rate.
Payroll employment v = v US dollar rate.
Unemployment rate ^ = v US dollar rate.
Unemployment rate v = ^ US dollar rate.
Note: the indicator allows predicting many other economic indicators.

Industrial production and capacity utilization.

The importance of the indicator: 2
Where it is published: by analytical departments.
It is available: on the 14th-17th of every month.
Periodicity: every month.
Volatility: low
Response of the markets: as a rule influence of this indicator on currency markets is low, and it depends on the current economic situation.

Retail sales.

The importance of the indicator: 2
Where it is published: Bureau of economic analysis of the Trade Department in the USA.
It is available: on the 9th -16th working day of every month.
Periodicity: every month.
Volatility: average.
Response of the markets: The influence on the US dollar rate depends on the concomitant economic situation.
Note: this is an indicator of inflation level.

Producer price index.
The importance of the indicator: 2
Where it is published: Bureau of the statistics of American State Labor Department
It is available: on the 9th-16th working day of every month.
Periodicity: every month.
Volatility: average.
Response of the markets: The influence on the US dollar rate depends on the concomitant economic situation.
Note: if the data is published with CPI at the same time, the importance of the index PPI is 1. This is an indicator of inflation level.

Consumer price index (CPI).

The importance of the indicator: 2
Where it is published: Bureau of the statistics of the American State Labor Department.
It is available: on the 15th-21st of every month.
Periodicity: every month.
Volatility: moderate.
Response of the markets: The influence on the US dollar rate depends on the concomitant economic situation.
Note: If this data is published with the PPI at the same time, this importance of the CPI index is 1. This is an indicator of inflation level.

Personal income and consumption expenditures.

The importance of the indicator: 2
Where it is published: Bureau of economic analysis of the Business Department in the USA.
It is available: on the 21st-31st of every month.
Periodicity: every month.
Volatility: moderate
Response of the markets:
Income ^ = ^ US dollar rate.
Income v = v US dollar rate.
Consumption ^ = ^ US dollar rate.
Consumption v = v US dollar rate.
Note: personal consumption is very important as it determines more than a half of gross domestic product.

Car sales.

The importance of the indicator: 3
Where it is published: by car manufacturers
It is available: on the first and the third working day after the end of the period.
Periodicity: every month.
Volatility: average.
Response of the markets:
Car Sales ^ = ^ US dollar rate.
Car Sales v = v US dollar rate.
Note: one of the first indicators that are published during a month. It is a forestalling indicator – it shows the changes of rates of the economic growth in future.

National association of purchasing manager’s index (NAMP)

The importance of the indicator: 3
Where it is published: national managers association.
It is available: on the first working day of every month.
Periodicity: every month.
Volatility: average.
Response of the markets:
NAPM ^ = ^ US dollar rate.
NAPM v = v US dollar rate
Note: this is the indicator that fully estimates the industrial segment of economy.

Trader also must understand that in some situations less important factors can prevail over the level of influence of more important factors. So, making forecasts a trader must take into account all the totality of indicators of economic development.

There are two ways you can make money on currency exchange market.

You can learn the basics of Forex market trading with the help of a good forex book and do the forex trading yourself.

Or you can hire experienced traders to manage your account and they will trade for you. Read more about forex investment.