This part of our fundamental analysis educational series deals with the economic releases to take into consideration when trading and will try to explain each and every economic indicator listed on the first part, to interpret it, and will look at the data from the past six months in order to build a chart showing us potential forecast for each specific release. In the end, we will have an educated guess about the state of that specific economy as looking back in the past might give us clues regarding potential future values for an economic indicator.
There are many websites over the Internet offering explanations for economic indicators, what they mean and how to interpret them, when they are released, etc., but for this project I will use the www.forexfactory.com information which is publicly available and the purpose is to show you where to find the information needed when you want to analyze an economy and what to do with it.
Each and every economic indicator under this Part will be treated separately, and will have the following things to consider:
- release date: the actual time in the trading day when the news is released;
- what it means and how should be interpreted;
- one chart showing past six months worth of data;
- conclusion based on the past data and what to expect next;
Based on the above, I will look at five major economies (United States, Eurozone, United Kingdom, Australia and Canada) and will analyze them based on the data gathered in this chapter.