ForexForex · Lesson 09

Fundamental Analysis & News

Interest rates, inflation, employment data and the economic calendar.

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Currencies are priced against expectations for interest rates. Anything that changes a central bank's likely path — inflation, growth, jobs — moves the currency, and the surprise versus forecast matters more than the raw number.

ReleaseWhy it matters
Central bank rate decisionDirectly sets the currency's yield
CPI (inflation)Drives future rate expectations
Non-Farm Payrolls (US)Headline labour strength, huge USD volatility
GDPBroad growth picture
PMIForward-looking business activity
Retail salesConsumer demand

Spreads widen and slippage spikes in the minutes around high-impact news. Either plan for it or stand aside.

Knowledge check

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What most directly drives a currency's long-run value?

Which matters most on a data release?