Forex Fundamental analysis
One of the key factors, which has influence on any trader’s success is his ability to correctly predict the market movements. The two main methods are technical and fundamental analysis of Forex market.
An important feature of fundamental analysis is its global nature. Events, which are analyzed in fundamental analysis, have long-term influence on supply and demand on the currency market. This information is composed of the news about the world’s biggest political and financial events. It’s hard to overestimate the influenced the news has on financial markets: when the most important news is published, the market volatility increases.
It’s quite easy for an experienced trader to analyze and predict how a single event may influence the market. However, analysis of several events, which may influence the market in completely different ways, is a very complicated and time-consuming process. This may be the reason why only approximately 20% of traders use fundamental analysis as their main forecasting tool.
Fundamental approach to Forex market analysis, unlike technical one, covers not only the prices and their changes, but the reasons for these changes as well. Each approach has its followers, advantages and disadvantages.
The USD/JPY pair is rising the entire fourth week of October in response to the complex statistics and the demand for the American currency.
On Thursday evening, the main currency pair is trading a little bit to the upside in response to the published American statistics.
The GDP/USD pair is differently responding to the statistics of the British GDP; investors are at a loss.
The main currency pair is recovering after yesterday’s sales thanks to the calm fundamental background.
Yesterday’s panic was replaced by the GBP/USD pair purchases; it seems that investors made haste when started selling.
Sales in the EUR/USD pair quieted down, but it’s possible that bears just decided to take a break.
On Monday, the USD/JPY pair is trading a little bit to the upside, but the activity is very low.
The pause between sales of the EUR/USD pair was very short yesterday; the instrument is under pressure once again.
On Thursday morning, the main currency pair updated July’s lows; investors are buying their sales back, but the situation remains uneasy.
On Thursday afternoon, the USD/JPY pair is rising a bit. However, the instrument has already been trading inside a certain range for three weeks and isn’t going to leave it in the nearest future.
The complex statistics from China provided no support for the Aussie; the AUD/USD growth potential is limited.
On Tuesday, the GBP/USD pair is growing after the publication of the strongest statistics on the inflation over the last couple of years.
The AUD/USD pair is trading to the upside on Tuesday morning as investors are buying the Aussie because of a possible interest rate decrease.
The main currency pair is trading to the upside on Monday; the inflation in the Eurozone matched expectations.
The AUD/USD pair is growing on Friday and trying to eliminate its fiasco in the middle of the week.