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 slowly regaining its positions; the market’s interest in “safe haven” assets is reducing.
The GBP/USD pair is moving upwards a little bit after plummeting last week.
The atmosphere of yesterday’s meeting of the European leaders wasn’t yet mourning, but the most tensed over the last several years.
On Tuesday, the EUR/USD pair moved upwards a little bit during the correction, but started slowing down after the American statistics was released.
The word “Brexit”, which is now widely used, causes a certain confusion, because, in fact, the process of the UK’s exiting the European Union hasn’t even started yet.
On Monday, the GBP/USD pair reached the lowest point over the previous 31 years; the brexit topic is escalating.
A week ago, everyone was wondering if the United Kingdom was going to exit the European Union, and now, after the referendum results were published, uncertainty relating to the Europe’s future is growing like a rolling snowball.
There goes the British referendum.
On Friday, the GBP/USD reached the lowest point over the previous 31 years and may yet continue falling.
The Brexit referendum is in full swing.
On Thursday afternoon, the main currency pair is moving to the upside; the market is calmly waiting for the results of the British referendum.
The GBP/USD pair is trading to the upside on Wednesday evening; the market is not afraid of the countdown to the referendum.
It’s less than 24 hours until the British referendum.
On Wednesday morning, the main currency pair is stabilizing after yesterday’s decline; the market is still in anticipation of the British referendum.
On Tuesday evening, the main currency pair retreated by almost 100 pips; bears are attacking.