Fundamentals:

Fundamentals:

Basis is defined as the assessment of macroeconomic indicators, economic growth, and geopolitical risks in the assessment of one currency against another. Foundations can be broken down into two categories: Human progress (as opposed to your import your export) and the flow of capital (return on investment from one economy to another). Going back to the Trade Flow, the more an economy importing more money is flowing out of the economy which in turn will weaken the currency. The more an economy exports more money flowing into the economy that will strengthen the currency. Flow of capital can be defined as flows of investment dollars out of an economy, factors of this will include: inflation, interest rates, investment yields, and geopolitical risks. There are 9 key economic announcements and they fall into two categories mentioned above. Here are the key announcements and their categories, FOMC (capital flows), balance of trade (trade flows), CPI (flow of capital), PPI (capital flows), consumer confidence (flow of capital), gross domestic product ( Trade and capital), unemployment (the flow of capital), ISM manufacturing (trade flows), and industrial production (trade flows).

There are six basic big announcements that need to be aware of how Forex trader, and below you will find a list of announcements and information about them.
1st The index of producer prices (PPI): This announcement is released monthly. PPI measures price changes received by domestic producers, as well as increasing the PPI does Interest rate hikes likely.
2nd Consumer Price Index (CPI): Also published monthly CPI measures changes in retail prices of a fixed basket of consumer goods and services and increase the CPI does Interest rate hikes likely.
3rd Monthly reports on paper: Better known as Non-Farm Payroll, measures actual jobs in services and manufacturing sectors.
4th FOMC: The FOMC meets every six weeks to decide on adjustments in interest rates, and a statement from the Fed is more important is that increases or decreases.
5th Trade balance: This announcement is released monthly, and it measures the net profits of imports versus exports.
6th GDP: This announcement is the most accurate indicator of inflation, and inflation is higher the greater the likelihood the Fed will raise rates.