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.
Side effects of a prolonged period of loose monetary policy of the world's leading central banks are gradually making themselves felt.
The AUD/USD pair is trading lower on Tuesday after the publication of statistical data on the Australian economy.
The AUD/USD is trading up on Monday, China has gone on a long vacation.
By Friday, the USD/JPY pair has retreated, maybe even too much – the Japanese economy doesn’t need a strong currency.
The main currency pair is growing on Thursday after the publication of statistics and comments by Mr. Dudley.
On Wednesday afternoon, the main currency pair is trading very sluggishly, as investors analyze the statistical flow.
The EUR/USD pair is growing, while the pan-European statistics continues to come out vague.
Another series of "Greek drama" is already on the way.
On Tuesday, the USD/JPY pair is decreasing - sales are continuing for the second consecutive day, and the yen is in demand as a "safe haven."
The US economy may soon lose its position as a major driver of the global post-crisis recovery.
The AUD/USD at the beginning of the new trading month is retreating on an ambiguous background of Chinese statistics.
On Friday, the USD/JPY pair is rapidly rising after the unexpected decision by the Bank of Japan.
The market is still moving sideways.
On Thursday, the GBP/USD pair is growing against the weakness of the dollar and the published British statistics.
The main currency pair weakened the night before, but in the afternoon on Thursday returned to a narrow trading range.