Fundamentally analyzing the foreign exchange market, like any other, they use special analytical reviews with possible graphical and numerical indicators, called indicators for fundamental analysis. Such data are usually published every month, except for some, quarterly indices - gross product and employment.
The indicator looks like a standard pair of numbers, one of which indicates the reporting period, and the other is a monthly revision preceding the reporting period. For example, the June reporting data is published in July, in the same place, the May indicators are included in the second number. This indexing approach helps institutions collecting economic statistics to obtain, together with the June primary indicators, more accurate, adjusted figures for May.
Indicators are published on the planet at different times, for example, in the United States, it first happens at 8:30 AM, then again at 10:30 AM. Do not forget that it is the first publications that carry the maximum information about the currency, therefore the opening of the US currency exchange is set at 8:20 AM, just so that there would be a little time to prepare and collect the necessary information.
Macro indicators
One of the groups of fundamental analysis indicators are macro indicators. The average hourly wage is an indicator of possible inflation, which is closely related to the rise in the value of the labor force. Average workweek - the indicator shows the average number of work hours in the average workweek over a period of one month. It is most often used when analyzing the state of employment in a country.
Building permits is an indicator showing the number of permits issued for the construction of new houses. indicates the level of well-being of the population. The number of manufactured stocks is an indicator of the number of reserves of manufactured goods, semi-finished products and components. Allows you to identify the existing stagnation in the economic sphere of the country. Construction costs - includes a report on the costs of housing construction, construction in the non-residential sector and government spending on new buildings. The increase in construction costs implies an improvement in the quality of life for the vast majority of the population. A loan for the purchase of various goods is an indicator of the purchasing power of the population. The higher the values of this indicator, the more confidence the consumer feels, who are not afraid to "get into debt".
Permanent analysts "Monetary aggregates"
One of the most important economic indicators is inflation, the level of which in the state determines the monetary political system of the Central Bank. It is this level that is closely interconnected with the state monetary system, and hence the exchange rate of its own currency in the international market. Thanks to inflation, the state economy is armed with a kind of barometer, indicating the indicator of the correct functioning of economic policy.
Indeed, in essence, money is "blood" flowing in the veins of the economic base and it is naturally necessary that these veins do not empty, and the number of banknotes is optimal. The circulating money in the economy of the state should not be less than the established amount, but also should not exceed this number, in order to prevent stagnation or other destructive processes, because such manipulations can lead to a crisis. Returning to the Central Bank of the state, whose role in controlling inflation cannot be exaggerated, we can add that this control is considered the highest priority in credit policy. The financial services at the state level in almost any country pay special attention to the control and measurement of inflation processes.
Analysis of inflationary issues offers the necessary information for the Central Bank to determine operations in the monetary political system, directly related to the exchange rate and its formation. Monetary aggregates are serious indicators in assessing inflation processes and reflecting the money supply in circulation. Nevertheless, more and more often, modern economics combines monetarist and Caseian economic models, although monetary aggregates are rightfully used in various analyzes and studies.
