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 main currency pair is getting more expensive for the fourth consecutive day, thanks to positive European statistics among other things.
On Wednesday, the AUD/USD is being sold very actively after the inflation statistics was published.
On Wednesday, the GBP/USD pair remains positive, but the purchases are weakening slowly.
Market sentiments are still against the “American”, although it may change until the end of the week.
On Tuesday, the Japanese Yen is under pressure, anticipating meetings of the USA FRS and the BoJ.
The main currency pair started the week with а growth after having been sold for several sessions in a row.
The EUR/USD pair is trading downwards despite yesterday’s volatility. It looks like the market sentiment is changing slowly.
On late Thursday afternoon, the GBP/USD pair is trading upwards, although there are a few fundamental reasons for this.
The main currency pair hasn’t been able to keep a positive impulse and right now is retreating; the meeting of the ECB is ahead.
The GBP/USD pair is being bought – very carefully, but gradually: it looks like the British Pound is ready to reverse the trend.
The EUR/USD par is trading upwards for the third consecutive day; the US Dollar remains weak.
On Monday, the GBP/USD pair is falling a bit, although the sales are more of emotional nature.
The AUD/USD pair is getting more expensive on Friday morning under the influence of the Chinese statistics.
The main currency pair fell to the levels of late March, but the sales don’t continue no more.
The correction has started in the AUD/USD pair, but the chances are very good that active buyers may return.