It is a well-known fact that FOREX brokers and traders use either one of two forms of analysis - technical or fundamental. The technical analysis can be pretty much the same and understood by learning basic terms and ways to translate different charts, the price is assumed to reflect all news, and the charts are the objects of analysis. The fundamental approach is about looking at the essential value of an investment and the economic conditions that influence the valuation of a certain currency. There are plenty of fundamental factors which can effect currency movements such as economic indicators. Economic indicators are reports which are usually released by neutral private organization or the government itself in order to reveal economic performance over a certain period of time or future forecasts. They are released at scheduled times (describing the country's economic health). By checking those reports the traders and investors can know if a certain nation's economy has improved or declined and may influence there decision and by that it influence the market; by created a trend. There are several number of publicized reports from different organizations, each one a particular purpose, and can be useful for predicting the different influences on the market. Here are a couple of examples to those organizations FOREX traders use: Consumer Price Index (CPI), calculated with over 200 different categories that modify of consumer goods prices. The CPI report is an indicator if a country is making or losing money on its products. The Gross Domestic Product (GDP), this report considered to be the most wide-scale of a country's economy and measures the entirety market value during a given year.

After reading and studying the major economic indicators, here are some more reports you should check: Retail Sales, Industrial Production, PMI, PPI, ECI, and durable goods report. These reports can prove to be a priceless resource for predicting the market's movements. Economic indicators can be easily found – they are available on the Internet for any FOREX investor and trader to read, so take your time, study them, understand them and how they affect a certain country's economy and currency. For conclusion here are a few tips to help you FOREX traders while using the fundamental analysis on the foreign currency exchange market: 1. Look out for the more comprehensive economic indicators that the market usually moves in accordance with. 2. Write down the release dates of the economic indicators and keep them near your trading-desk while always keeping an open eye for the future. 3. Pay attention to the trend the economic indicators created. Don’t react and invest right away to the new. Numbers can be published and then revised. 4. Usually before a certain economic indicator is released the market makes assumptions about the data, so look out to see whether the assumptions were right or wrong. That information is more important to you than the report itself. Basically the report is just a tool used to forecast the market's reactions and movements. When there seem to be huge gaps between the assumptions and the report itself, find out and study the reason for the gap - that may help you in a future investment.