Forex Currency Trading Systems

The following are the top 3 primary fundamental indicators causing currencies to fluctuate.
The “Journal of Commerce” Industrial Price Index (JoC)
The “Journal of Commerce” Industrial price index consists of the prices of 18 industrial materials and supplies processed in the initial stages of manufacturing, building, and energy production. It is more sensitive than other indexes, as it was designed to signal changes in inflation prior to the other price indexes.

Merchandise Trade Balance
The merchandise trade balance is one of the most important economic indicators. Its value may trigger long-lasting changes in monetary and foreign policies. The trade balance consists of the net difference between the exports and imports of a certain economy.

The data includes six categories:

1. Food;
2. Raw materials and industrial supplies;
3. Consumer goods;
4. Automobiles;
5. Capital goods;
6. Other merchandise.

Employment Indicators
The employment rate is an economic indicator with significance in multiple areas. The rate of employment, naturally, measures the health of an economy. The unemployment rate is a lagging economic indicator. It is an important feature to remember, especially in times of economic recession. Whereas people focus on the health and recovery of the job sector, employment is the last economic indicator to rebound. When economic contraction causes jobs to be cut, it takes time to generate psychological confidence in economic recovery at the managerial level before new job positions are added. At individual levels, the improvement of the job outlook may be clouded when new positions are added in small companies and thus not fully reflected in the data. The employment reports are significant to the financial markets in general and to foreign exchange in particular. In foreign exchange, the data is truly affective in periods of economic transition—recovery and contraction. The reason for the indicators’ importance in extreme economic situations lies in the picture they paint of the health of the economy and in the degree of maturity of a business cycle. A decreasing unemployment figure signals a maturing cycle, whereas the opposite is true for an increasing unemployment indicator.