fundamenals of forex trading

[plviljoen]

Hi Traders 

I just want to know what is the most important fundamentals of forex trading. Is it trading the news or is it pattern trading ect.

list the top 5 most important fundamentals for forex trading and why.

Educate me

[Caseynotes]

5 minutes ago, plviljoen said:

Hi Traders 

I just want to know what is the most important fundamentals of forex trading. Is it trading the news or is it pattern trading ect.

list the top 5 most important fundamentals for forex trading and why.

Educate me

All markets are linked be they FX or whatever. Fundamentals are the drivers and give markets direction and targets where equilibrium might be re-established while technical analysis tries to forecast the drunken route price will take to get there.

Order of Importance;

1/ FOMC mtg rate decision 8x a year. US interest rate changes are the most forceful market movers.

2/ US Non Farm Payroll, monthly is a big influencer on the FOMC mtg's.

3/ US services PMIs, a leading 'state of the economy' indicator.

4/ US manufacturing PMI's, as above.

5/ US CPI, inflation. Not so important lately as there hasn't been any.

All the other first world economies take their lead off the US economy (US sneezes rest of world catches a cold)