Thursday, September 11, 2008

The most important fundamental indicators




The Forex market is much like other markets and is affected by the laws of supply and demand, which are also affected by economic conditions.


Two of the most important economic factors which affect supply and demand are interest rates and the strength of the economy and the strength of the economy is affected by the gross domestic product (GDP), foreign investment and the economy's balance of trade.


Many different economic indicators are published by governments and by other sources and are generally considered to be reliable measures of the health of an economy which are followed by all sections of the investment market. Nearly all economic indicators are published once a month although some are published more often and normally weekly.


Two of the most important fundamental indicators are interest rates and international trade figures, but other extremely useful indicators include the, consumer price index (CPI), producer price index (PPI), purchasing manager's index (PMI), durable goods orders and retail sales.

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