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 middle of the week, the USD/JPY pair is under pressure again after a slight recovery.
The main currency pair has grown a little bit after with the appearance of American investors, but the general tendency is still not in favor of the Euro.
On Tuesday afternoon, the GBP/USD pair is trading to the upside, despite the statistics on the balance of trade.
On Friday, the AUD/USD pair is trading to the downside after revised forecasts form the RBA.
Sales in the GBP/USD pair are still significant; the complicated statistics just “adds fuel to the flame”.
The AUD/USD pair is trading a bit upwards after significant sales over the last couple of trading sessions.
In the middle of the week, the GBP/USD pair is trading downwards; the statistics published in the afternoon don’t add any optimism.
The main currency pair is trading to the downside; investors are careful in their reaction to the published statistics.
The AUD/USD pair is trading upwards for the second day in a row, supported by the statistics and the weakness of the American currency.
The USD/JPY pair is trading near April’s lows after another meeting of the BoJ.
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.