Economic Calendar

The Economic Calendar and Fundamental Analysis 

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 these tips in mind:

• Always keep an economic calendar on hand, listing the indicators and the RIGHT times they are due for release.
• Keep an eye 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 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 news. Often the numbers are released and then 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 even more important to understand these numbers, what they mean, and how they influence a nation’s economy.