How Economic Indicators Move Currency Markets?

27 March 2018, 13:15
Ahmad Hassam

Technical Traders disregard fundamental analysis.

According to them price reflects all available information.

We should only look at the charts and make decision accordingly.

After watching your patterns fail repeatedly you will start thinking what's wrong.

Fundamental analysis looks at the macroeconomics of currency market.

Of course it is vague and doesn't provide you with exact entries and exits.

But it can answer the question why price is rising or falling.

I suggest you learn some macroeconomics as it will help you understand price mechanism more.

I have written a post in which I explain a few important economic indicators that Wall Street people watch closely.

GDP Q/Q is an important economic indicator that moves the market every month.

I have personally seen GBPUSD jump up 200 pips in less than 1 minute on GDP Q/Q release.

GDP Deflator is another important economic indicator and so are few more.

I will write more posts on how CPI and PPI move the currency market.