The traders and investors that trades in the Forex market in the short term focus mainly on the most important economic news of the week and how they can affect the prices of different currency pairs in the market. This can work well for many traders, however it is also important to take into account [...]
General definition The Personal Income and Consumption Index is a report from United States that includes both personal income and consumption expenditures from all sources. This is a monthly figure, which always refers to the two previous months in which the Bureau of Economic Analysis of the Department of Commerce discloses the report. In this case, the personal income [...]
The economic cycle is a series of phases that the economy goes through and that happen in order until reaching the final phase in which the economic cycle begins again. Each cycle goes through periods of recession and periods of expansion. This phenomenon has been common throughout economic history, being known by other names such [...]
A recession is a decrease in economic activity over a period of time. Officially, a recession is considered to exist when the GDP variation rate is negative for two consecutive quarters. It is also known as a period of economic contraction. The economic recession is the phase of the economic cycle in which economic activity [...]
Monetary policy is the discipline of economic policy that controls monetary factors to ensure price stability and economic growth. It brings together all the actions that the monetary authorities (central banks) have to adjust the money market. Through monetary policy, central banks direct the economy to achieve specific macroeconomic objectives. To do this they use [...]
The fundamental indicators shown below are of high importance for the euro, however, since the EMU (Economic and Monetary Union, the countries within the European Union which share a common market and a single currency, the euro) is composed of 17 countries, it is essential to be aware of major political and economic events of [...]
The events and economic news bring strong movements in the financial markets at the time of publication. In this article we will explain all the keys to trade these scenarios successfully. It is possible that more than once we have suffered the consequences of economic or political events with an open position. In such situations [...]
In a next article we will see some techniques to trade the fundamental news in Forex. Before going on, you have to take into account the advantages mentioned in previous lessons about news trading but also the risks and disadvantages that I will expose next and that you will be able to experiment frequently when [...]
What is the Tankan survey? It is an economic survey of Japanese business which is conducted by the Bank of Japan (BoJ), the country’s central bank, which uses the results to formulate monetary policy in Japan. The report is published four times a year in April, July, October and mid-December. […]
In this article we will examine the different models used in fundamental analysis to predict changes in currency prices which are used by analysts of the most important investment banks. These models may be of interest to all traders who want to increase their knowledge regarding fundamental analysis applied to the Forex market. Currently there are seven [...]