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ArkianFX
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Forex Fundamentals

Forex FundamentalsForex EUR / USD - What are the basic principles that influence this pair?

What are the new foundations that are influencing the pair EUR / USD and how it does?

Could you give me a list of fundamental principles and the manner (positive or negative) influence of each of the pair?

I have a problem, because I am a newbie, to recognize them.

Thank you very much.

Here are some key economic reports that will affect the EUR / USD:

For USD:
- Non-agricultural jobs
- The decision of the FOMC interest rate
- Retail
- The CPI (Index of Consumer Prices)
- GDP
- Trade Balance U.S.

For EU
- Manufacturing Purchasing Managers Index
- Procurement Managers Index
- Retail
- The German retail sales
- The euro zone's gross domestic product
- Data on unemployment (Germany and the euro area)
- Index of Consumer Prices
- German ZEW Survey
- German IFO Survey

You can keep track of the economic releases each week on the calendar here DailyFX http://www.dailyfx.com/calendar .

Traders are concerned about the overall health of the economy which they trade. The better the health of the economy, usually the stronger currency will get over weaker currencies. That's why you look at reports such as GDP growth, manufacturing, production, etc.

Second, trade flows and capital flows into a currency will strengthen the currency which is why it is important to look at interest rates (interest rates attract capital causing the currency to strengthen) and numbers in the balance commercial.

To put all the pieces together, I would recommend going over the video here ... http://forexforums.dailyfx.com/free-vide . He has a wealth of knowledge to help you get started.

Forex trading is purely supply and demand.

From the perspective of textbooks, the basic factors that would increase the demand of a currency while maintaining the request of the other currency in the pair of non-evolution, the basic factor is considered to have a positive influence on currency against another.

For example, the country that reports high economic growth increased demand for its currency as foreign investors need to convert the local currency of the country before they can invest in assets of the country.

Similarly, a country with high inflation will be a decrease in demand for its currency due to return for depreciation of foreign investors from their investments in the country's assets after taking into account the negative effect of inflation.

Increase in Retail Sales leads to greater economic growth. Therefore, this will in turn lead to increased demand for the currency of the country. Thus, an increase in retail sales will have a positive influence on the currency.

However, to analyze a business opportunity by using this method may prove futile for any part-time Forex traders. Unless you build a program to crunch all the economic data and interpret their complex relationships, try to take advantage of the new fundamental analysis may be too difficult for a part time Forex traders.

If you watched the Forex market during the release of economic news, you may be baffled by why some economic news have the opposite effect of what it should be. Because the fundamentals and a currency pair has no simple linear relationship. There are many complex factors underlying game that we can not include in our analysis. That is why, when the number of jobs in Australia was released earlier today (Sept 09, 2009) best-15k-27.1k than expected, yet AUD / USD fell from 0.8615 to 0 yet , 8583, despite the many cheaper

I suggest you read Steve Nison Japane.

Posted on January 16, 2010.
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