Forex Market Fundamental factors
Indicators display a host of variables and impacts on national and global economies. They become factors of the currency market after their public release, as they start to effect traders’ minds. In this chapter you will find descriptions of some specific macroeconomic market indicators, mostly from the United States. You will learn temporarily about each of them, find out the time and periodicity of their updates and some other peculiarities which will help you to use them suitably.
Some notes about what we have included and excluded: we excluded from our list such indicators as Redbook (a questionnaire which provides statistics about weekly sales in some of the big supermarkets in the USA) as their effect on the Forex market is very small, on the order of rounding error. All at once we included some weak factors that can be used as a confirmation for strong factor tendency in the list and have stated this feature in the description. Ultimately, we state certain values which signify a “Trading signal” for the factors strong enough to be favorable to opening a position. This means the value of change for a given indicator may specify an advantageous time to open a trade.
Humphrey-Hawkins testimony
“This is a report from the head of the Federal Reserve System of the USA (Fed). The testimony is given twice a year, every summer and winter. The testimony is given first to the Senate, then to the House of Representatives. This report contains information about the goals and plans of the Fed in relation to current monetary policy. Investors try to use the report to guess future Fed actions about changes in the base interest. This speech is the strongest factor affecting the market and one of the most important events in Forex.”