One of the most essential and difficult analysis of the foreign exchange market fundamental analysis is. It helps to foretell the movements of exchange rates, as well as the general economic situation in the world and separate countries. Rate of currency price is reliant on some factors, they are: political, economical factors and act of providence.

The fundamental economic indicators include:

Gross National Product defines the level of the economy totally. This indicator is the sum of consumer expenses, investment, government spending and net trade. Definition of this variable is based on the quantity of all goods and services produced domestically and outside the country.

The Gross Domestic Product is the sum of all goods and services produced by both domestic and foreign firms

Consumption Spending index demonstrates a tendency of consumers to redirect from money holdings to rise of expenditures.

Industrial Production Index is an essential economic indicator, showing the strength of the economy and indirectly – stability of currency. Traders often use this variable as a eventual signal for making trading decisions.

Capacity Utilization Index defines the cumulative industrial output which is belonged to the total production capacity. Effectiveness of application this index demonstrates that a high degree of capacity utilization foregoes inflation and raises expectations that the central bank will raise interest rates to avert or diminish inflation on the foreign exchange market.

Factory Orders Index demonstrates the total orders for remote and nondurable goods.

Durable Goods Orders index covers only those goods, the term of exploitation of which is more than 3 years, they can be cars, jewelry, furniture and etc. This indicator is important for the currency market because it displays an indication of consumer confidence.

Business Inventories indicator is based on the value of articles produced and settled in storage for subsequent sale. Influence on the market is limited.

Indicators of building. The size of construction in the range from half to two million units shows a strong economy, while a figure about one million units is an evidence of the economic decline.

Another important fundamental factor is the rate of inflation, because interest rates directly depend on it.

Consumer price index shows the average change in purchasing cost for a fixed basket of commodities and services.

Both indexes are applied by traders as a subsidiary in the assessment of inflationary activity.

Gross national product implicit deflator and Gross domestic product implicit deflator are published quarterly, they are considered to be the most important measuring mechanisms of inflation.

The political factors maintain the parliamentary elections, the conclusion of trade agreements. The force majeure includes political crises and etc.

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