How to View and Forecast the Market: Forex Fundamental Indicators

we can conclude that an increase in the open interest on the futures market, as a rule, indicates the preservation and enhancement of the current trend in Forex

The dollar and gold or the dollar and oil – 90% of traders use these correlations while trading.

rate.
Comparing the rate of LIBOR with the key interest rates of the central banks, traders can draw conclusions about the future prospects of a currency. For example, the LIBOR rate of 1.5% with the basic interest rate of 1.25% is normal, but at 0.5% it indicates a liquidity problem in the market. At the same time, the LIBOR rate of 0.5% with 1.5% basic rate indicates excess liquidity. As a rule, the value of currencies of countries, where banks have liquidity problems, tends to fall.

To analyse its behaviour Forex traders often use the currency pair EUR/JPY chart, which often moves in the same direction as the CHF/JPY, but does it a little faster. That is why beginners make use of this time to make a transaction, and they are very often successful.

a strong correlation between the AUD rates and the price of gold. The same is true of the New Zealand dollar.

So the 10-year US-German spread works quite reliably. The trend in this case is usually more important than the absolute values.

every first Friday of the month at the time of the publication of this report, exchange rates make fairly large fluctuations within literally a few seconds

No other economic indicator, including data on GDP, has such a strong impact on the currency market as information on the labour market.