Category: Fundamental

Housing announcements report on how healthy the housing sec­tor of the economy is. Because such a large amount of the…

Inflation announcements report on how quickly or slowly the general price level in the economy is rising. Monitoring inflation is…

This concept of a currency getting stronger when the country has trade surplus and getting weaker when it has a trade deficit…

Forex traders keep a close watch on the economic calendar because they know that economic announcements provide the data that analysts and…

Economic growth announcements report on how well a coun­try’s economy is doing. Economies can move in one of three directions:…

Trade balance announcements report on how much a country is exporting compared to how much it is importing. Countries that…

Consumer confidence announcements report on how confident the consumers within an economy are. Confident consumers tend to spend more because…

Business confidence announcements report on how confident the business managers within an economy are. Confident business managers tend to hire…

Why do we care what goods or services a country imports? We care because if we know the primary goods and…

Why do we care about a country’s central bank, its mandates, and its gold and foreign currency reserve holdings? We care…

Central banks do not like uncertainty or unusual levels of volatility in the Forex market. It is much harder to maintain…

Investment flows represent the money that flows from one coun­try to another as a result of the purchase or sale of assets…

The forces of supply and demand seem to drive every other market on earth, so why shouldn’t they also drive…

Multinational corporations are hedgers. Corporations that operate in multiple countries often run into scenarios in which they have accounts receivable…

Central banks are manipulators. Now, don’t get us wrong. Central banks are not malicious manipulators. They are not out in…

One of the most important things to remember when you are trad­ing in the Forex market is that the market is populated…

Government interventions and currency manipulation are situa­tions in which a government, typically through its central bank, takes specific action in the…

Worried That the Currency Is Getting Too Weak Why would a government worry that its currency was getting too weak? Doesn’t…

Why do we care if the country that issued the currency has an over-involved government that likes to intervene in…

The money supply represents the total amount of a currency that is circulating through the economy. That may seem like…

Why do we care what goods or services a country exports? We care because if we know the primary goods and services…