Currency Trading For Dummies, 4th Edition
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Knowing the fundamental drivers of currency rates is the foundation of understanding price movements. This is very important to understand if you want to trade currency as an investment. Here are some suggestions:

  • Get to know the major economic data reports from all the major economies.

  • Understand the importance of expectations versus actual outcomes. Anticipate alternative outcomes to better gauge how the market is really reacting.

  • Stay aware of the pricing in and pricing out of market expectations that occurs in advance of data and events.

  • Factor incoming data and news into the major fundamental themes of interest-rate expectations, economic-growth prospects, inflation, and structural developments.

  • Be aware that technical and position-related themes can overwhelm the fundamentals.

About This Article

This article is from the book:

About the book authors:

Kathleen Brooks is research director at FOREX.com. She produces research on G10 and emerging-market currencies, providing her clients with actionable trading ideas. Brian Dolan has more than 20 years of experience in the currency market and is a frequent commentator for major news media. Paul Mladjenovic, CFP, is a certified financial planner practitioner, writer, and speaker. He has helped people with financial and business concerns since 1981. He is the author of Stock Investing For Dummies and has accurately forecast many economic events, such as the rise of gold, the decline of the U.S. dollar, and the housing crisis. Learn more at ravingcapitalist.com.

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