Economic Calendar

Changes in a countries economic state will directly affect the price and volume of that country’s currency. It is very important to realize that these economic indicators are not the only thing that influences a currency’s price.

One has to keep in mind that there are technical factors, third third party reports, and other things that can also drastically affect a currency’s valuation.

When conducting Fundamental Analysis keep the following in mind:

• Always keep an economic calendar on hand, listing the indicators and the correct times they are due for release.
• Keep track on future events as markets often move in anticipation of a certain indicator or report due for release at a later stage.
• Be informed of the indicators attracting the most market attention at any given time. These are normally the ones causing large price and volume movements.
• Know the market expectations for data, and pay attention to whether or not these expectations are met. If there is a drastic difference between expectations and the actual result, be aware of the possible justifications for this difference.
• Do not react too quickly to any financial news. Often the numbers are released and then later revised, changing things very quickly. Pay attention to these revisions, as they may be useful in seeing trends.

It is important to look at all these economic indicators and even private reports and it is even more important to understand these numbers, what they mean, and how they influence a nation’s economy and it's currency.