Forex Fundamentals?

[Leth]

I didn't know forex had fundamentals...but here is what i found....

1) Interest rate announcements by central banks. Language in meeting minutes published following announcements or rate change decisions. E.g. Federal Open Market Committee (FOMC) Minutes.

2) Government debt and deficit figures that show changes for the better, or worse. Increasing deficits, for example, often portend an increase in interest rates as the government competes with the private sector for investment capital. The difference between stocks and Forex is that increasing rates are usually good news for a currency.

3) Quarterly GDP reports. Preliminary national GDP announcements also have the potential to affect market sentiment.

4) Economic or geopolitical events such as elections, conflicts and political uprising etc. Anything that investors or traders think may destabilize or impact the market.

5) Reports such as the Institute of Supply Management in the US and Purchasing Management Index in Europe tend to be closely watched by traders.

6) Industrial production figures, jobs (non-farm payrolls in the U.S.) and employment figures can impact markets including currencies since they could have a direct bearing on national interest rate and economic policy.

7) Yen traders closely follow Japanese reports such as the Tankan quarterly survey for insights into currency movement.

8) Market sentiment published by market commentators and news services. It is often a good idea to buy on rumour, sell on news.