{"id":1209,"date":"2024-01-26T10:52:19","date_gmt":"2024-01-26T10:52:19","guid":{"rendered":"https:\/\/tradeafricahub.com\/?page_id=1209"},"modified":"2024-01-26T10:52:21","modified_gmt":"2024-01-26T10:52:21","slug":"fundamental-indicators","status":"publish","type":"page","link":"https:\/\/tradeafricahub.com\/index.php\/fundamental-indicators\/","title":{"rendered":"Fundamental Indicators"},"content":{"rendered":"\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p>In this lesson, we will cover the most important fundamental indicators.<\/p>\n\n\n\n<p>Table of Contents<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Fundamental indicators\n<ul class=\"wp-block-list\">\n<li>Employment reports<\/li>\n\n\n\n<li>Gross domestic product (GDP)<\/li>\n\n\n\n<li>Trade balance<\/li>\n\n\n\n<li>Consumer price index (CPI)<\/li>\n\n\n\n<li>The purchasing managers index (PMI)<\/li>\n\n\n\n<li>Interest rate decisions<\/li>\n\n\n\n<li>Central bank statements<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Fundamental indicators<\/h2>\n\n\n\n<p>Compared to technical analysts, fundamental traders look at various economic indicators and reports to better understand future market directions.&nbsp;Even though most retail traders focus on technical analysis, understanding the fundamentals is always helpful.&nbsp;Especially for swing traders, if we look at the bigger picture and in the longer time horizon, markets are most often moving based on fundamental drivers.&nbsp;There are dozens of different fundamental indicators for different countries and we certainly do not have to know all of them. Here are the most important ones&nbsp;that tend to have an impact on the markets.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Employment reports<\/h3>\n\n\n\n<p>Employment reports include employment change, unemployment rates, number of jobless individuals applying for government support, level of payrolls and&nbsp;other job-related data. The most famous employment report is the US NFP which is normally released on the first Friday of every new month.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Gross domestic product (GDP)<\/h3>\n\n\n\n<p>Changes in the GDP can have a large impact on foreign currency. An increase in GDP tells us that the economy is strengthening, and currency could rise.&nbsp;A decrease in GDP indicates a weakening economy, therefore the possibility of failing prices in the currency.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Trade balance<\/h3>\n\n\n\n<p>Trade balance represents the difference between the imports and exports of the subject economy and affects the demand for that country\u2019s currency.&nbsp;There are two possible outcomes \u2013 a deficit, which means the country is importing more than exporting and a surplus which is the opposite.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Consumer price index (CPI)<\/h3>\n\n\n\n<p>The consumer price index tells us prices of products on a consumer level and it is also a key indicator of inflation.&nbsp;Changes in CPI can directly influence monetary policy as it is mandatory for most major central banks to control inflation.&nbsp;An increase in inflation usually indicates an interest rate rise, while lower CPI readings indicate lower interest rates.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">The purchasing managers index (PMI)<\/h3>\n\n\n\n<p>The purchasing managers index shows the activity of purchasing managers and can act as a leading economic indicator. PMI indicates strength&nbsp;or weakness in the manufacturing sector.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Interest rate decisions<\/h3>\n\n\n\n<p>Interest rates are part of the central bank\u2019s monetary policy. The leading indicators include activities and speeches by bank officials that are regularly watched by traders.&nbsp;&nbsp;Interest rate changes by central banks are very important in the valuation of currencies. If banks set high-interest rates, their currency&nbsp;usually attracts foreign assets from countries with lower interest rates.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Central bank statements<\/h3>\n\n\n\n<p>Most central banks issue statements to describe their monetary policy and why they did or did not make any changes. These statements&nbsp;affect the markets, especially if the changes are unexpected. We use the terms hawkish and dovish in the central bank\u2019s decisions.&nbsp;Central banks are hawkish when they want to tighten monetary policy by increasing interest rates or reducing balance sheets.&nbsp;Being hawkish means strong economic growth.&nbsp;Dovish is the opposite when banks reduce interest rates or increase quantitative easing to stimulate the economy.&nbsp;Being dovish means weak economic growth.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In this lesson, we will cover the most important fundamental indicators. Table of Contents Fundamental indicators Compared to technical analysts, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"_themeisle_gutenberg_block_has_review":false,"footnotes":""},"class_list":["post-1209","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Fundamental Indicators - TAH<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/tradeafricahub.com\/index.php\/fundamental-indicators\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Fundamental Indicators - TAH\" \/>\n<meta property=\"og:description\" content=\"In this lesson, we will cover the most important fundamental indicators. 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