Fundamental Analysis: The Index of Real Estate as an Economic Indicator

singapore1Whether you are trading Forex in Singapore or any other part of the world, the principals of trading and market analysis stay the same. In this article we will discuss one of the most important indicators of Fundamental analysis of the market that can be found in the economical calendar on Trading in Singapore site or on the site of any Forex broker.

The global financial crisis was not born in the USA accidentally. The figures of the real estate market in the USA represent important information for the entire economy of the world, because they show the situation of the largest in the world economical system – the United States of America. Moreover, the data of USA real estate market is directly related to mortgage rates and terms of economic cycles. Consequently, a smart trader must make a deep research of the USA economy and also the world economy before starting trading. Real estate indicators have a great influence on the growth or decrease of value of the national currency, especially of the USD. This process doesn’t happen directly, but through the securities market. If the indicators rise, then bonds are falling and the shares rise in value.

The real estate information is announced approximately on 15th working day of every month. Moreover, 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.

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

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