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HOW DO Economic Events impact Global Currencies:

arihant magazine Foreign exchange traders put the most emphasis on technical analysis, because traders around the world use similar charts and tools in predicting market trends. arihant The reason the FOREX market can be so predictable some times is that if the majority are using the same graph for determining patterns and trends, then it is highly likely that they will act in a similar manner. books for bank exams So several thousand traders who have all charted the same resistance line, for example, will most likely either set their trades and direction conform to that line. arihant sample papers When fundamental data is made available to the public there is a reaction from investors and speculators. Information in the form of news and economic indicators is more vague than that of technical indicators. arihant gk There is a lot of gray area in this type of analysis. The market will ultimately react to how people think the economic data compares to the current market situation.  Economic indicators usually reveal information that Should cause a currency to go up in price or May cause a currency to go down. The words SHOULD & MAY in the quotes above reveal the ambiguity of the fundamental data. arihant general knowledge Here is an example of what analyzing fundamental data is like. Lets suppose there are six economic indicators (there are a lot more). Lets call our six indicators 1, 2, 3, 4, 5, and current affairs by arihant 6. Now we wait for the data from our indicators to be published in a financial magazine or at an online source. We get the readings for our economic data for the EURO as following: Indicator 1: is in a range where the Euro may go up Indicator current affairs 2021 arihant 2: is in a range where the Euro should go up Indicator 3: is in a range where the Euro could go down Indicator 4: is in a range where the Euro usually goes down Indicator 5: is in a range where the Euro could go up Indicator 6: is in a range where the Euro may go down By looking at the above indicators, you dont know what the Euro is going to do. Furthermore, currencies are always traded in pairs. So you would have to get the fundamental data for another currency pair and compare it with the EURO. I think you can image that this is not a simple task. arihant current affairs I do not want to discourage you away from fundamental data. The best way to learn is to learn about one piece of economic data at a time. Eventually you will build a puzzle from all of the fundamental and technical data and make more informed trading decisions arihant current affairs monthly.

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