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.
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