When getting started with FX trading, it is important to know which forex resources will give you an advantage over the competition. Everyone beginning with a forex trading platform begins on equal ground and the way to gain an advantage and increase profits is to accurately predict which currencies are wise investments. The best way to make these predictions is to look at the forex resources. One such resource is the Housing Starts and Building Permits, which can swing the tide in FX trading.
Housing Starts and Building Permits
Released by the US Department of Commerce and the Bureau of the Census on the 15th of each month, the report for Housing Starts and Building Permits includes estimations for the number of houses and housing units that have begun undergoing construction. The classification for a construction project being started is that it has either had the footings or foundations excavated or the ground has been broken by the first shovel of dirt. The data is categorized as single family and multi-family, with multi-family counting each unit. For example, a condo with 100 units would count as 100 Starts.
Before excavation begins, a building permit must be obtained in order to legally begin the project. This would make it appear that there would be more permits than starts, but this is not necessarily the case. Many states do not require permits, so starts can actually exceed permits.
The reports are broken down into national regions, making them easier to analyze for the purposes of investing with a forex broker, because certain regional data needs to be accounted for. One such piece of regional data is the weather predictions and natural disasters in an area, which can skew the report if many areas of the country are hit at once.
FX Trading Importance
While other forex resources have large, immediate effects on the FX trading market, the truth is that housing starts and building permits rarely shift the forex market very significantly. IECC
Some changes to look out for, though, include large swings after an increase in long-term mortgage rates. Residential investments only comprises 4% of the GDP, but changes to the housing starts and building permits figures translates to proportionally higher GDP changes.
Forex Trading Platform: Getting Started
If you are looking to enter the high risk/reward world of FX trading, then the best place to begin learning the fundamentals is by opening a free forex demo account. These allow you to practice investing, using forex resources, and predicting currency outcomes without risking your own money. Try a free one today with a forex trading platform.