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The major global commodities that have the most influence on currency exchange rates and serve as important indicators in Intermarket analysis are gold and crude oil.

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Fundamental and important data affect the demand for a currency, especially the Gross Domestic Product (GDP), the Consumer Price Index (CPI), and the Employment Figure. Those three indicators reflect the economic condition of a country and they directly affect the exchange rate of the currency.

Whatever strategy you use in trading, you must monitor the three data mentioned for determining the tendency of currency's price movement based on the capital inflow and outflow in the country. The country with a strong economic condition will attract more investors so more money supply will flow into the country, and vice versa.

Continue Reading at Everything You Need to Know About Fundamental Analysis

There are four main types of Commitment of Traders (COT) reports:

1. Legacy COT Report
2. Supplemental COT Report
3. Disaggregated COT Report
4. Traders in Financial Futures (TFF) Report

Continue Reading at What is Market Sentiment in Forex and How to Measure It?

Let's use EUR/JPY. Say the BoJ (Bank of Japan) rate is 0.1% and ECB (European Central Bank) is around 0.5%. If BoJ increased interest rates to 0.5%, then their rates will be the same as ECB. However, these changes will entice investors to move their assets to Yen, because they want to get some profit from the changes. Such movement will cause the rise of demand on Yen so that its exchange rates against Euro will rise too.

On the contrary, if BoJ lowers their interest rates to 0.05%, investors will sell their Yens and move their investment into other kinds of assets like bonds, property, or another currency with higher interest, Yen's exchange rates will decrease.

Continue Reading at Central Bank Policies That Affect the Forex Market