There is no sense to talk about trading the financial markets without taking into consideration fundamental analysis. It simply doesn’t work.

While there are certainly some technical systems out there that are trading mainly based on specific technical analysis setups, having stop loss, take profit and entry orders, one should at least know why specific financial products move, when, and, most imortantly, what to expect in terms of volatility.

Even for technical traders there are some situation in which price is ranging, and all of a sudden the range is broken and trend continues. It should be of no surprise such a break happens usually when there is an impulse for it, and this is being given by a certain economic release that affect the currency pair traded, for example, or a central banker speech (like the press conferences that are being hold in Europe afthe the European Central Bank interest rate decision is made), or testimonies in front of the Senate the Federal Reserve Governor must hold, etc.

The purpose of this educational series is to look at the biggest economies worldwide and try to look for the factors that should be taking into consideration when trading the currency markets, factors that influence their economy, hence make market move. I will take a look at Eurozone, UK, US, Australia and Canada, and each indicator will be analyzed in the form of what it means, how should be interpreted, when it is released, and what to expect under our market conditions. (sometimes good news out of US is not necessarily good news for the US dollar, a lot depending weather it is a risk on/off environment, equities should be taking into consideration as well, etc.

Then I will take a look at other factors that fall into the fundamental analysis category and these are press releases, interest rate decisions, summits, etc.

All in all, after this educational series you will know everything there is to know about where to find this information, how to interpret it, how to decipher the language used, what terminology is used, and, most importantly, if you are waiting for price to make a specific move, then the likelyhood that this move is made during/at the moment an economic news is released is very high. Hence, the fundamental analysis’s importance.

Any questions regarding the subject are welcomed at the email address below. Enjoy.

Mircea Vasiu
July 2013
[email protected]

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