Category: fundamental

News that has an impact on the economy both directly and indirectly is considered a fundamental factor. These fundamentals are separated into three major categories: economic factors, financial factors and political factors which include crises. Economic and financial factors have the biggest impact on the movement of securities such as currencies. The reason that economic…

Each month, the United States Department of Labor released a report called the Nonfarm Payroll. This fundamental indicator (the term for a report or release) measures the change in employment in the United States for the previous month, excluding the farming sector. For the release in this example, the figures came in above expectations of…

When making trading decisions, traders often speculate about the health of countries’ economies – particularly in the Forex market. In order to have an understanding of an economy’s ‘fundamentals’, one needs to look at how productive and vibrant the different sectors of the economy are. This involves looking at data on manufacturing, retail sales, housing…

Inflation’s Impact on an Economy Inflation measures the rate at which prices in an economy are rising. Inflation is tied directly to the purchasing power of a currency within its borders and affects its standing on the international markets. Prices of goods, houses, labour, production materials, etc., are all closely monitored to see if their…

Employment indicators reflect the overall health of an economy or business cycle. In order to understand how an economy is functioning, it is important to know how many jobs are being created, what percentage of the work force is actively working, and how many new people are claiming unemployment. It is also important to monitor…