3.2. Economics for fundamental analysis
For fundamental analysis on Forex, just as on any goods market, traders use the information from
analytical reviews of specialists published in newspapers as well as charts and tables of many
numerical indicators serving this purpose.
All fundamental indicators are generally released on a
monthly basis, except for the Gross Domestic Product and the Employment Cost Index, which are
released quarterly (See below).
All economic indicators are released in pairs. The first number
reflects the latest period. The second number is the revised figure for the month prior to the latest
period. For instance, in July, economic data is released for the month of June, the latest period. In
addition, the release includes the revision of the same economic indicator figure for the month of
May. The reason for the revision is that the department in charge of economic statistics
compilation is in a better position to gather more information in a month's time. This feature is
important for traders. If the figure for an economic indicator is better than expected by 0.4% for
the past month, but the previous month's number is revised lower by 0.4%, then traders can draw
a justified conclusion about the economy's situation. Economic indicators are released at different
times.
In the United States, economic data is generally released at 8:30 and 10 AM ET. It is
important to remember that the most significant data for foreign exchange is released at 8:30 AM
ET. In order to allow time for last-minute adjustments, the United States currency futures markets
open at 8:20 AM ET.
Sources of information. Information on upcoming economic indicators is published in all leading
newspapers, such as the Wall Street Journal, the Financial Times, and the New York Times; and
business magazines, such as Business Week. More often than not, traders use the monitor
sources—Bridge Information Systems, Reuters, or Bloomberg — to gather information both from
news publications and from the sources' own up-to-date information. Separate groups of fundamental indicators are considered below in accordance with a generally accepted
classification.