This article is a guide to Forex indicators, which will let you take full advantage of the information on the network. In the last few lessons we explored what economic indicators are and how they can influence prices on currency markets. Please take note however that those we mentioned are only some of the most important indicators that are taken into account in fundamental analysis. Every day, numerous economic indicators are published by governments, rating agencies, and various economic entities. As we already mentioned, these data points represent the real state of health of the economy. We are referring to the economy of a single country or a community of countries (e.g., EU). The data thus obtained is also called fundamental, so remember that behind this term are macroeconomic indicators such as those we have seen in past lessons (GDP, unemployment, inflation, interest rates, consumption, etc.).
Data from economic indicators can be divided into two broad categories: absolute data and relative data. While absolute data refers to a certain period, relative data compares more periods. For example, there may be comparisons between data for the second quarter and that for the first quarter, as well as comparisons of data for the first quarter of 2014, with that of the first quarter of 2013. Obviously, in addition to quarterly data, there is also that of semesters, months, etc.
There is little talk of this term but it happens more often than expected. Yet the consensus on economic indicators is very important, as it represents the data expected by analysts. Usually it is called a much more understandable term like “expected value” by analysts, however sometimes in some economic insights it is referred to by its technical name.
Consensus is not just a prediction, but it assumes great importance because the analysts’ predictions influence the market, sometimes decisively. If, for example, a rating agency predicts that GDP for Japan will have a negative change of 1 percentage point, investors will almost certainly begin to move accordingly and there will also be effects on the Forex market.
Finding Consensus Data
A good trader must be able to make good use of the internet, by connecting to sites that provide data on consensus as well as official data for fundamentals. You can get information about precise dates and times when certain information is released or published on the internet. These is communication that takes place through bulletins published by an official website (e.g., a government agency or rating agency in the case of consensus) or via a press conference. We will soon provide resources for economic indicators and consensus on our site.
Go to the next lesson – How to interpret economic indicators on Forex