on November 20, Take advantage of today's market opportunities. START TRADING NOW. Adam Lemon. Adam Lemon began his role at DailyForex in when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. He has previously worked within financial markets over a year period, including 6 years with Merrill Lynch. Learn more from Adam in his free lessons at FX Academy. Did you like what you read? Currencies can even change value based on expectations, such as the dollar falling from month highs in anticipation of the Fed raising rates.

This gives a general sense of how fundamental analysis works in the forex market, and you can see how learning to read economic and political news is a crucial part of learning forex.

Most forex strategies will recommend that you keep an eye on political and economic news in your targeted nations, but fundamental analysis helps you understand currency value on a deeper level.

These factors can be understood through world news, economic reports, the actions of central banks, and more. These include unemployment numbers, housing statistics, and more.

GDP tells you the total market value of all the goods and services a nation produced that year. While many see GDP as the broadest way to view an economy, it is also a lagging indicator, because it is only released once a year and thus does not give a snapshot of where an economy is in the current moment.

Before the final annual GDP is released, there are two reports: the advance report and the preliminary report. The reports are likely to stir up some volatility in the market, especially as they often offer different numbers. The industrial production report specifically shares changes in production of factories, utilities, and mines.

Utility production can be more volatile as it is impacted by weather and other factors. For example, after news about huge floods that devastated farms in China in November dropped, we saw a spike in the value of the USD over the CNH. The retail sales report, as the name suggests, measures total sales from all retail stores in the country.

This is an excellent way to track consumer spending, and reports adjust for impacts of the seasons. Retail sales reports are often more readily available with more recent data, so they are useful between releases of the GDP and other lagging indicators. The CPI will give you price changes of all consumer goods at a glance.

Export prices can change pretty rapidly, so you need to keep a good eye on them. Every nation has a Central Bank. These institutions oversee monetary policy, set economic goals such as lowering inflation or raising employment levels, issue currency, regulate credit, manage reserves, and act as the bank of the government. Speaking of central banks, interest rates can make a huge difference in exchange rates for currencies.

Higher interest rates indicate optimism from the central bank, as they mean the economy is growing. If interest rates are being cut, that means the central bank is more skeptical. Traders will often try to anticipate what a central bank is going to do. If there is news approaching of an announcement and traders think that interest rates will increase, they might start buying that currency to get a head start on the increase in value associated with these higher rates.

Others will take you by surprise, such as major weather events, or… a global pandemic? National economies have been impacted not only by the start of the pandemic back in March , but also news of developing vaccines, vaccine rollouts, the Delta variant, and more.

Traders flocked to the Yen and Swiss Franc after news of a potential COVID variant resistant to vaccines, as these safe haven currencies often stand up more strongly to political turmoil. Fundamental analysis helps you understand the building blocks of a currency and help you anticipate where it will go next.

However, many traders use the forex markets more for short-term price fluctuations. This means that immediate news and technical analysis are often more helpful. Long-term positions are more common in the stock market than in forex, and fundamental analysis is a bit more useful for deciding what to do with your long-term positions.

However, fundamental analysis can give you a heads up on when a currency might be experiencing short-term volatility that you want to capitalize on. Reading an economic calendar and tracking upcoming reports will help you predict these windows and sneak on in to capitalize on a turbulent market. But how do you start putting this into practice?

First, make sure you have one of the top brokers for forex trading , which will automatically set you up with many of the tools you need. In particular, the following advice can get you started on tracking economic indicators and making better-informed trading decisions. Keeping an economic calendar handy on your desktop can help keep you informed of upcoming reports and indicators. There are many economic calendars available from a variety of websites. Different indicators hit the market differently.

When the USD weakens, many traders will be watching inflation for an indication that things might change. Understanding the context of how these indicators are viewed in the market is just as important as understanding the indicators themselves. How is trading volume impacted before and after a major announcement?

What indicators are news sources most interested in at what times? Economies are complicated. Countries are complicated. Fundamental analysis can be a bit of a rabbit hole, as there are so many factors that impact currency values, and so many nations whose economies you might want to understand on a deeper level. Set priorities for yourself for what is most interesting to you and most relevant to your trading strategies: you might decide to first just focus on commodity currencies , or exotic currencies , or take a deep dive on the Euro.

Whatever you choose, make sure that you set yourself reasonable goals, and then make balanced decisions about how to incorporate your findings into your trading strategy.

After all that reading about fundamental analysis, we bet one of your personal indicators is going off and it might be time for a snack! Now, you can make decisions about how these tools might relate to your specific forex trading goals and strategies.

Remember, fundamental analysis offers many insights, but it is a complicated process.

Once you start to trade Forex FX online, you will naturally want to improve your performance. Using certain tools can improve your profitability in the market.

Generally speaking, every trader tries to implement their own strategy, while constantly adding new items to it. As a trader, you will be mainly looking into implementing technical, fundamental, or mixed analysis when it comes to developing your own strategy.

No matter what type of analysis you employ, it is vital to understand every type of analysis. This article will focus on explaining what fundamental analysis is and how it can be used for FX trading online. We'll also review the best Forex trading fundamental analysis software available for professional traders. When it comes to Forex trading, you should understand that this is one of the most volatile markets - and the highest degree of volatility is usually seen during news releases or fundamental events.

Such events are usually known ahead of time, yet their results are hardly predictable. Consequently, fundamental analysis deals with the prediction of the results of an important event, and their transition into trading. In other words, fundamental analysis is the art of predicting the changes that are about to come in world economies, before speculating on how associated currencies will move in relation to the changes.

It is not possible to say that fundamental analysis is useful only for fundamental traders. When it comes to profiting from currency moves, it is important to stay aware of the fundamental events, even if you are a technical trader. Sometimes your technical analysis may just show the best point of entry for a trade.

After you enter the trade based on this information, some additional important economic news might be released. This may turn into an instant stop-loss , or even worse, an instant stop out. To avoid such a scenario, remember to remain cautious about important fundamental events and try to employ fundamental analysis - even if this is not your primary methodology. The best way to incorporate it into your trading is by using Forex fundamental analysis software.

A Forex calendar is the most important source of data for your fundamental analysis. This is a type of software that lists the fundamental events, their time, influenced currencies, the power of influence, previous values, expected values, and real values once the news is released. First of all, it is important to pick the correct time zone. Start by selecting your local time zone in the drop down menu.

Once you have selected your local time zone, it is now necessary to select a certain time span over which you are planning to perform your fundamental analysis. This time span depends on the type of a trader you are, yet it is highly recommended to look at least one week ahead. After this, you will be able to see a list of upcoming economic events, which are usually news releases from a government or central bank.

The most important value here is marked under 'Impact', as it determines the possible strength of a currency price shift. A green impact would indicate a weak shift, a yellow impact would stand for moderate, while a red impact indicates that the news is crucial. What is also important to look at in Forex trading fundamental analysis software is the frequency of events. If you see a lot of green impact events happening within a few hours, you shouldn't necessarily treat them as the ones that have a low impact.

If these events are going to influence the same currency, it might be true that the results of these events would trigger higher volatility, rather than just one high impact event. Another important point to take a look at on the Forex calendar is the difference between previous and forecasted values - as this may indicate a possible shift in the trend of the instrument.

Forex calendars may be the most widely used tool for breakout trading, as many fundamental traders try to get into a trade some time before major news gets released, and before the price escalates.

This is not really software used for the analysis of fundamental events, yet it is very useful for fundamental traders. Usually, it comes as an additional plugin with MetaTrader 4 MT4 , but with Admirals you can access OCA orders by applying the MT4 Supreme Edition update. So what is an OCA order? It stands for 'One Cancels Another'. It does exactly what it stands for. WIth this type of order, you get to set two orders - one buy limit order, and another sell limit order.

Once the first order is executed, the second one is automatically cancelled. This is especially useful for fundamental traders that are looking for breakouts. Even though this is not the best Forex fundamental analysis software, it is a useful feature for executing your fundamental analysis more efficiently. Once you've fully understood the benefits of utilising fundamental analysis software in your trading, your next area of focus should be: 'Who should I trade with?

To get more information, or to start trading Forex right now, click the banner below! Informers are quite old fashioned, yet still useful pieces of fundamental analysis software.

They function by informing you when a certain piece of economic data is being released. Their main aim is not to display the upcoming events like Forex calendars, but rather to let you know about the results of a certain event as fast as possible. This is why such pieces of software are useful. Many traders use Forex trading fundamental analysis software in the form of widgets for their Windows desktop, or as a browser extension. Nowadays, it is also possible to set up advanced informers that can send notifications to your email or phone when a certain event is released.

This can be particularly useful for traders that prefer to trade on major news, yet find it difficult to constantly keep track of fundamental news releases. Even though there are lots of pieces of code that can improve your fundamental analysis, Forex calendars remain popular among a large amount of traders. There are also some professional traders that use OCA orders and informers. Having said that, most traders prefer to trade fundamental news manually, and then perform an analysis of their own.

The majority of fundamental traders try to rely on their own vision of economic and political events to trade currencies online.

In addition to this, many traders look for a hand-crafted analysis from the top Forex analysts, which can make the use of Forex fundamental software more limited. This is why Forex trading fundamental analysis software hasn't gained as much popularity among traders or developers. As a Forex trader, you will mostly be relying on a Forex calendar to perform your analysis.

The main attribute to look for is the refresh speed when the news is released. Ideally, you want to get an instant update once the news has been published.

This is why you should test every option to find the one that reacts the quickest. An important fact to note about fundamental analysis is that it can save you money in more cases than it can actually make you money. If you are technical trader, you would be much safer avoiding trading on the days or hours of major economic releases, as any technical strategy may become obsolete at such times.

For every trader, it is vital to take a look at the economic calendar before engaging in any trade, as this way you can avoid confusion.

It is also important to pay strong attention to currency correlation. In many cases, you may see that news is related to GBP, so you might think you can start trading other currencies, thinking that you are safe. In reality, GBP currency pairs may actually have a strong correlation with the currencies you are trading. With this in mind, it is vital to check not only the currencies of the events, but their correlation with the other currencies you are planning to trade with.

We hope that you have enjoyed this Forex fundamental analysis software article. Keep up up with the latest Forex news released by visiting Admirals' Forex Calendar - and don't underestimate the importance of paying attention to fundamental events, even if you are not a fundamental trader.

MetaTrader Supreme Edition is the ultimate enhanced plugin for your MetaTrader platform. Whether you're trading with MetaTrader 4 or MetaTrader 5, Admirals provides you with access to a range of excellent additional features such as the 'Mini Trader' feature, which enables you to trade outside of the platform at any time, so you never miss the right opportunity to buy or sell. Boost your trading experience and your potential for trading success, click the banner below to receive your FREE MetaTrader Supreme Edition plugin!

About Admirals Admirals is a multi-award winning, globally regulated Forex and CFD broker, offering trading on over 8, financial instruments via the world's most popular trading platforms: MetaTrader 4 and MetaTrader 5.

Start trading today! This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.

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Help center. Status Page. Login Register. Top search terms: Create an account, Mobile application, Invest account, Web trader platform. Best Forex Trading Fundamental Analysis Software Admirals Jun 30, 9 Min read. What is Fundamental Analysis? Why is Fundamental Analysis Useful? The best way to incorporate it into your trading is by using Forex fundamental analysis software Types of Fundamental Analysis Software Forex Calendar A Forex calendar is the most important source of data for your fundamental analysis.

Source: Admirals Forex Calendar What is also important to look at in Forex trading fundamental analysis software is the frequency of events. OCA Orders This is not really software used for the analysis of fundamental events, yet it is very useful for fundamental traders.

This book is the ideal introduction to the world of Forex trading for beginner traders. Select market-relevant content such as headlines on central banks, politics, and currencies. Login Register. It is not possible to say that fundamental analysis is useful only for fundamental traders. When it comes to profiting from currency moves, it is important to stay aware of the fundamental events, even if you are a technical trader.

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