This article is devoted to an economic index called Cost of Goods Sold: what it is, what it is used for, how it is calculated, and what accounting methods it has.
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This article is devoted to the PMI (Purchasing Managers Index), its influence on the currency market and its use in trading.
This overview is devoted to such macroeconomic indices as Personal Income and Personal Spending and their influence on the currency market.
This article is devoted to Trade Balance, its influence on the national currency, and its use in Forex trading.
This article is about the PPI (Producer Price Index), its peculiarities and ways of using it in the market.
The article is devoted to the Consumer Price Index (CPI), its connection to other indices, the GDP, and unemployment. Also, the use of the index in Forex is discussed.
The publication of the unemployment rate data may noticeably increase market volatility. Many traders call Non-Farm Payrolls an index that moves markets, however, it cannot reverse the current trend.
Non-Farm Payrolls (NFP) are essential data on employment in the USA, which shows changes in the number of employees out of the agricultural sector of the country during the last month. The indicator is based on a poll answered by some 400,000 companies and 50,000 households. Empirically, it has been figured out that if the NFP increases stably by +200,000 every month, the GDP surplus equals roughly 3%.
The influence of fundamental data on the dynamics of financial instruments is studied by a special type of analysis – fundamental analysis, an integral part of any trader training program. Fundamental analysis is applied to regularly published macroeconomic indices of certain countries and the world economy on the whole as well as to political events, relevant for the financial world.
In fact, fundamental analysis does not have any secrets as such. There are, however, a few rules one should stick to in order to keep their assumptions and conclusions logical.
Professionals of currency and stock exchange markets have two completely different ways to analyze assets: fundamental and technical.