Forex encyclopedia

Usually traders use two types of analysis in Forex – technical and fundamental. The first one involves chart analysis with application of mathematical methods and principles. Fundamental Analysis in Forex implies monitoring of political and economic indicators as well as monetary policy of countries. The main difference between the methods is the approach to the creation of price on the chart. Traders who prefer technical analysis think that it is enough to analyse the actual prices, because this data already includes all indications and reasons of change. However, followers of fundamental approach state that prices depend on fundamental factors and mark relationship between demand and supply. Thus, using technical approach traders analyse prices and relying on fundamental approach they deal with analysis of the trading instrument. Fundamental analysis in Forex examines political, economic, macro- and micro indicators not only for individual countries, but for global environment also.
Industrial production index (IP) is an indicator characterizing industrial output in mining, manufacturing, energy-savings and utilities. The index reflects growth or decline in manufacture and services in the USA without account of construction segment. It is also known as “net output” and is expressed as percentage. Industrial production takes about 40% of the US economy and is closely related with such figure as GDP. Advantage of index is that it only accounts for industrial output rather than its monetary value. It makes the index one of major indicators of national economy condition and an important fundamental influencing currency rate. Growth of indicator means consolidation of the economy and contributes to upsurge of the American currency.
New in Encyclopedia
Picture of the day
DCLG HPI (House Price Index)
Forex encyclopedia
Forex encyclopedia “Clever FX” is the unique service created by FreshForex to introduce world of Forex to traders. The main purpose is to share knowledge of experienced traders with novice traders in simple and convenient form. Every trader will be able to learn something new here. If you are a professional trader, we invite you to write an article for “Clever FX” and get reward. Let's write Forex history together!
Close
Log in
Your browser does not support cookie. If cookie is disabled in your Internet browser, you may have problems with accessing Client Area. How to enable cookie .