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.
In the late Friday afternoon, the AUD/USD pair is trading upwards after China published the statistics on the inflation.
The EUR/USD pair rose sharply after the ECB announced its decisions, but then plummeted again.
The USD/JPY pair is trading to the downside for the second day in a row, but not very actively, as the market is waiting for the outside signals.
Another weak statistics knocked down the Australian Dollar; sales aren’t increasing, but still continue.
The GBP/USD pair is getting cheaper on Wednesday afternoon after they publish some disappointing statistics on the Industrial Production.
The main currency pair is moving a little bit upwards; so far, there are no reasons to continue yesterday’s growth.
The AUD/USD pair is trading downwards after another meeting of the RBA.
On Monday morning, the main currency pair updated its multi-month low, but was able to recover later in the afternoon.
At the end of the week, the AUD/USD in rather stable; the country’s positive statistics couldn’t provide enough support for growth.
The GBP/USD pair continue growing on Thursday afternoon in connection with upsurge in interest in risks on the market.
The EUR/USD pair is looking stable on Wednesday despite changes in investors’ sentiments and the oil’s rally.
On Wednesday afternoon, the AUD/USD pair is trading to the downside after the country published rather complicated statistics.
The GBP/USD pair is trading steadily without changes in sentiments despite positive statistics.
The USD/JPY pair is growing on Tuesday after Japan publish several macroeconomic reports.
While there is no much news on the market, the EUR/USD pair is getting more expensive and not waiting for changes in sentiments.