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The Importance Of The Real Estate Indicator In Fundamental Analysis Of Online Trading

December 28th, 2010

Whether you are trading Forex in Singapore, USA, Australia or any other part of the world, the rules of trading and market analysis stay the same for any trader. In this post we will discuss one of the most important indicators of Fundamental analysis of Forex market that can be seen in the economical calendar on Trading in Singapore site or on the site of any Singapore Forex broker.

Fundamental analysis of the market is almost impossible without economical calendar. It shows all most important economical events that take place in the world’s leading countries. As the national currency of a country directly connected to the situation of its economy, watching the economical changes of such countries as USA, European zone, Australia and Japan, can help you forecast the price changes and give you great opportunities for successful trading.

The global economical crisis was not born in the USA accidentally. As the figures of the USA economy such as real estate, employment rate, interest rate and others reflect important information for the entire economy of the world, because they reflect the situation of the largest in the world economical system – the United States of America that has an impact on the economy of other countries. Real estate situation in the USA is one of the most important indicators for the fundamental analysis and plays a great role in the development of the national economy. Moreover, the info of USA real estate market is directly related to mortgage rates and terms of economic cycles.

Before starting trading, a smart trader must make a deep analysis of the USA economy and also the world economy paying attention on the changes of the main economical indicators of the leading countries. Real estate index has a great influence on the growth or decrease of price of the national currency, especially of the USD. This change doesn’t occur directly, but through the securities market. If the real estate situation indicator increases, then bonds are falling and the shares rise in value. Keeping this formula in mind, will allow you make correct trading decisions on the basis of the world economical data and increase your chances for successful trading.

The real estate information is announced approximately on 15th working day of every month. Furthermore, the analysis of the real estate situation in USA is performed at all stages: permission for construction works, the completed building, the sale of new houses and existing ones, the construction costs. That reflects the most accurate data of the real estate situation.

If the indicator for the beginning of construction work has a number of 1.5-2 million, it means that the USA economy is rising; and if the level is reduced to a million – it indicates a recession.

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