Precious metals investment novice entry fundamental analysis
Fundamental analysis and technical analysis is the main method to use when analyzing two types of foreign investment, due to the impact of long-term fundamentals of the exchange rate movement direction to a large extent, fundamental analysis and therefore long-term investors become indispensable analysis tool . However, due to the scope of analysis covers the fundamentals of large and complex, leading many investors to its Despair.
Trading foreign exchange for many years in the Queen Mary hmcfds, summarizes some of the elements of fundamental analysis required to understand the main contents are: various economic indicators and economic data interpretation, economic policy overview, government statements and positions review, government intervention.
Than the various economic data and indicators published by the government most directly reflects changes in the economic side, a number of important economic data will be released in the market to generate volatility, and may even change the short-term market trend. We will first start from the interpretation of economic data and indicators to help investors correctly understand, analyze, judge these data.
GDP reading
GDP, namely gross domestic product, the English name of the Gross Domestic Product, usually abbreviated as GDP. The macroeconomic indicators are the most talked about economic statistics, because it is considered the most important indicator of national economic development.
GDP is gross domestic product at market prices, and is a country (or region) of all resident units in a given period the final results of production activities. In other words, the value of Japanese companies in the US factory invested created, it will also be included in US GDP. It deals with real economic activity.
From the terms of economics, gross domestic product in three forms, namely value, income, and products respectively. The form of value, it is all the difference between the non-fixed assets value of goods and services in a given period of all resident units of production of all goods and services with the same period the value of the investment, ie, the value of all resident units and increased; income from form of view, it is all resident units in a certain period of direct creation and income; the form of products, it is the end-use of goods and services minus imports of goods and services.
Of course, as an ordinary investor, we do not need to explore much of the economic significance of GDP, we will be focusing on the impact of GDP on foreign exchange markets.
GDP grew faster economic development of the country show that the faster, slower growth, slower economic development of the country, if the GDP growth into negative, then no doubt the country into recession.
Generally speaking, if the GDP to maintain rapid growth, will bring support for the country's currency will, on the contrary play a negative role in the currency of the country. Here's growth rate is a relative concept, suppose A, B two countries GDP growth rate of 1.5% and 0.5%, respectively, although the growth rate is not fast enough, but if this rate for some time, A country's currency movements will It will be better than country B currency. Here we consider only the factors of GDP, the actual foreign exchange movements also integrated other factors, but the GDP is one of the most important economic data, has a greater impact on the foreign exchange market.
Western countries publish GDP are published monthly and is usually divided into quarterly basis, among which the quarterly GDP data released most important, investors should examine the results of the quarterly GDP compared with the previous quarter and the same period last year of data, the growth rate improve, or higher than expected, can be regarded as positive.
Interpretation of the leading index
Leading Index (Leading Indicator), also known as leading indicators or leading indicators, is one of the most important economic indicators to predict future economic developments, the weighted average of various economic variables guide the economic cycle.
Leading Index is composed of many elements involved in many aspects of the national economy, with the US leading index, for example, include the following elements:
1 manufacturing average weekly workload.
2 average weekly jobless claims.
New orders for consumer goods and raw materials 3 manufacturer.
4 vendor delivery performance - the percentage of delayed delivery of its plants.
5 contracts plant and equipment orders.
6 new building permits private investment.
7 M2 money supply.
8 Standard & Poor's 500 stock index and dividend income.
9 Michigan consumer confidence index.
The difference between production costs and selling price of 10.