Fundamental Analysis in Forex requires taking into account the economic indicators that can affect the country’s currency.

Since economic indicators reflect the economic state of a country, the price and the volume of a country’s currency is directly affected when there’s a significant change in the conditions reported.

Here are some useful tips when trading using fundamental analysis:

  1. Know when the indicators are due for release. There are economic calendars available online and on Central Banks website.
  2. Identify if the market expectations for the data is met, this is more important than the data itself.
  3. Understand what are the impacts of the data to the nation’s economy.

These economic indicators can be an invaluable resource when analyzed and used properly.

<<< Previous Lesson: Types of Forex Market Analysis