Fundamental analysis is the study of how economy of the country affects its currency rates which mainly involved in interpretation of statistical reports and economic indicators hundred of economic news and report religious daily allow to some extent to predict whether the currency value will appreciate for depreciate in future and when reversal of the current trend may be expected. Date and time when a particular report or indicator due to be released in scheduled in advanced and can be found in the economic calendar it is the main to an analyst use to determine the impact news may have it also show experts forecast of the data to be announced. Central Bank and interest rates: since our central bank is often responsible for head link countries financial matters the policy it is surprising has a profound impact on the currency rates for instance to increase the value it can buy the currency and hold it in its reverse in order to decrease the rate the reverses are sold back to the market. When an increase in consumer spending is required the central bank lower interest rate on the loans it provides to commercial banks if it I am too slow inflation the interest rates are increased in order to reduce spending. Depending on where is it more concern on inflation or growth Central Bank's policy can be referred as to hawkish or dovish. The farmer usually leads to higher interest rates while the latter commonly signifies that the interest rate are about to be decreased. inflation: inflation evaluates how fast the price of goods and services is rising and has a direct impact on the supply and demand for currency and thus affects its rate the measure inflation indicators are: 1) Gross Domestic Product: it evaluates all goods and services produced during the reporting period an increase in Gross Domestic Product signifies economic gross and therefore it is used to measure inflation.2) consumer price index: it measures the value of defined basket of goods and services Express as an index when compared to the previous results consumer price index shows a consumer by power has changed and how it was affected by inflation. 3) producer price index : this indicator shows the change in the price that producer received and allows to evaluate how the consumer level price would be affected. employments: employment level directly affect currency rate for it impacts future and current spending an increase in unemployment is believed to signify that the economy is growing weaker than the demand for its currency is falling on the country strong employment number are a sign of growing economy that usually means that the demand for currency will continue to increase. Below you will find the most important employment reports for different countries: 1)us non farm payroll: an assessment of employment Trends with the exception of government non profit organisation and farm workers. 2) us unemployment insurance initial claim: the number of new unemployment benefits claims that Maya the number of newly unemployed. 3) labour force survey: it measures the change of current employment rates in Canada. retail sales: this indicator is important scenes consumer spending accounts for a substantial part of the economy it measures the total amount spent on various groups of goods and services during the certain period of time. Retail sales growth shows the consumer have extra income to spend and are confident in the country's economy. home sales: growing housing market is one of the major indicator of a strong economy mainly based on the consumer confidence and mortgage rates phone sales report shows the aggregate demand among consumer for housing. wholesale trade report: wholesale trade report is based on the survey of 4500 wholesale merchants conducted on a monthly basis that includes statics on monthly sale inverter and inventory to sales ratio it indicates imbalances in supply and demand and may help to predict quarterly GDP report, however does not strongly impact the market. Balance of payments: balance of payment summarises our transaction for a certain period of time between countries resident and non resident all transaction are subdivided into current account that includes goods and services and income and capital account comprising of transaction in financial instruments these data are crucial in formulation National and international economic policy. trade balance: the report shows the difference between a country's imports and exports and is a significant part of Balance of payments. Trade deficient means that the country's imports are more than it exports while trade surplus indicates the opposite surplus or declining deficient often signifies increased demand for the currency. Thanks
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