FUNDAMENTALS PART 2

What do we look out for when we are doing our research on Bloomberg?

 

- We need the currency pair, usually in the headline

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- The direction up or down

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- Read the article for the reasons why is it moving

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- Analyst expectation

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You need all of these points to be present in your research

for you to consider this as an opportunity to act.

 

What information do we need when doing our research on Forexlive.com?

 

The purpose of using this is to give us Realtime news and analysis as each post is released a few minutes after the event.

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This site is forex specific and gives you a central bank filter which makes it easy to focus on the important parts.

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The analysis and breakdown on this website is perfect for helping us understand exactly what is happening in the market and why.

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The last one is centralbanknews.info

We approach this website in the exact same way, these are free and important resources which you should research at the start of your trading day.

 

 

 

Its important that you do your research into these banks!

We need to know who the voting members are, their names, which countries they come from and their historical stance (bias). The current views of these institutions on interest rates and in action. When they meet, when their decisions are announced, whether the minutes of their meetings are published (If so, when), details of previous interest rate meetings & decisions taken.

 

All this information helps build the picture of the economic environment of each bank and country. You will need to know what governors are important and which favour low interest rates known as Doves and which favour high interest rates known as Hawks.

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So its important to read articles which these governors publish, we are looking for comments which go against there usual bias for indications on what there next move will be next. The Banks are constantly trying to tell us what there next move will be because the unknown is what causes volatility and they don't want this as theyare trying to maintain a stable currency.

 

Central bank websites:

Bank of England - http://www.bankofengland.co.uk/

Federal Reserve Bank - http://www.federalreserve.gov/

Bank of Canada - http://www.bankofcanada.ca/

European Central Bank - https://www.ecb.europa.eu

Swiss National Bank - http://www.snb.ch/en/

Bank of Japan - https://www.boj.or.jp/en/