Indicators of the fundamental analysis

Table of Contents

Economical indicators get on the market in exact time and more often than happening of changes in the base interest changes of governments and nature disasters like earthquakes and etc; Gross domestic product (GDP) and the index of work load which are publicized every 3 months.
Economical indicator is index for the stake under review and index for next stake under review. For example in July are publicized the economical indexes for May. This is made because of the reason the institution responsible for the summary of the economical statistic gets in the moment of publicizing of the indicator for June more information about May. This information is important to the traders. If the value of the economical indicator for the last month is with 0.4% better than the expectations but the indicator for the previous month is corrected with less than 0.4% the trader can skip all other database.
Economical indicators are announced on different time. In USA they are publicized between 8.30 and 10.30 in the morning (American east time). It is important to know that most of the information about the international currency is announced at 8.30 in the morning. The currency market in USA opens in 8.20 in the morning because there must be time for last preparations.
The information for the economical indicators is publicized in all newspapers like “Wallstreet Journal”, “Financial Times”, “New York Times”, also in newspapers about the whole business world like “Business Week”. The traders use actively the electronically sources “Bridge Information System”, “Reuters”, “Bloomberg” for receiving of information.

Gross national product

The gross national product (GNP) characterizes perfectly the economic in its wholeness. This indicator is made in macro scale of the sum of the consumer expenses, investments, government expenses and the clear capacity of the trade. When defining the GNP is used the sum of all stocks and services made by the population of USA in and out the country.

Gross domestic product

The gross domestic product (GDP) is sum of all stocks and services made in the country either national either international companies. The index of GDP abroad is more popular. For example in USA the indexes of GDP are publicized for making easier the comparing of the economical indicators of the different countries.

Consumer index

Consumption is possible either at the expense of personal either at the expense of stored up earnings. The decision of the consumer to spend the resources or to keep them has psychological character. The trust of the consumer is important indicator of the inclination of the consumers who have clear earning to pass from keeping of resources to spending them.

Index of the capacity of the investments

Investments or the gross private inner deposits are made of fixed deposits and of the value of the stocks.

Index of the government expenses

The index of the government expenses is especially important either by itself either from point of view of its influence on the other economical indexes. For example the expenses of USA for defense until 1990 play important role in securing of the general work load in USA. The made after that shortening of the military expenses in small period of time brings to rising of the indexes of unemployment.

Index of the clear commerce capacity

Clear commerce capacity is another important part of GNP. The global internationalization and the economical and political events after 1980 show big influence on the ability of USA to hold against the competition with other countries. Made over the last years deficit in USA slows down the stature of GNP. GNP depends on stock and financial streams.

Index of the industrial production

The index of the industrial production characterizes the general production of the national industrial, communal and extractive corporations. From the position of the fundamental analysis this is important indicator which shows the power of the economic and indirect – the power of the national currency. That’s the reason the currency traders to use this indicator as a potential signal for making trade decisions.

Index of using the producing powers

analysis indicators fundamentalThe index of using the producing powers characterizes the general capacity of the industrial production taken to the general producing power. The last shows the level of the production where the corporation can leave in normal energetically conditions. Usually using the power is not taken to the number of the indicators important for the currency market. After all there are examples when the drawing of this indicator from the position of the economic is useful for the fundamental analysis. Its normal value for stable economic is 81.5%. If it is 85% or more this means “overheating” of the industrial production i.e. the economic is close to reaching its maximum capacity. High steppe of utilization of the powers brings the inflation and for the currency market it is signal that the Central bank will rise its main interest percent to avoid or low down the inflation.

Index of the industrial orders

The index of the industrial orders characterizes the general capacity of the orders of stocks for short-termed and long-termed usage. To the last we can put the stocks for consumption, clothes, productions of the low industry and the products for long-termed usage. The orders for the last are separated from the others. For the traders on the currency market the index of the industrial orders has restricted meaning.

Index of the orders for long-termed usage

The index of the orders for long-termed usage characterizes the production of production with time limit of exploitation more than three years. Examples for such production are the cars, station equipment, furniture and toys. These stocks are separated in four categories – products of metallurgy, machine-building, electric and transport machine-building.
For expelling the influence of the volatility typical for the capacity of military orders, when defining this indicator the production for defense is reported separately.
This indicator is important for the currency market as long as it gives good notion for the user trust. The orders for long-termed usage are more expensive than the one for short-termed usage so the big meaning of this indicator shows the intention of the users to spend resources. That’s why for the currency market this indicator is “bull” signal.

Index of the store belts

The index of the store belts is based on the value of the objects made and held in store for future usage. To collect such information is not hard and it is not something that can surprise the market. Apart from that the reached level of control of the finances and the computerization secure the high steppe of control of the stored stocks. That’s why the importance of this indicator for the currency market is restricted.

Index of the expenses for construction

This index is important economical indicator included in the deciphers of the GDP of USA. Also every other construction traditionally is engine pulling out the American economic from the decline after the World War II. This indicator is separated in three basic categories: