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 falling on Monday, but this decline is unmotivated so far, without any news and catalysts.
The USD/JPY pair is trading downwards; the fact that the Dollar is weak remains in effect.
The GBP/USD pair is trading upwards after the statistics on the UK GDP was published.
The main currency pair continues climbing on Thursday using the US Dollar weakness.
The growing uncertainty concerning further actions of the FRS makes the markets even more volatile than they were.
The Japanese Yen is strengthening for the second day in a row; the “catalyst” is still vulnerable US Dollar.
The main currency pair is growing for the third consecutive day influenced by soft comments from the Federal Reserve and pressure on the Dollar.
The main currency pair is strengthening a little bit on Monday, but the intraday activity is quite weak.
The USD/JPY pair continue growing on the “thin” market; the statistics published this morning turned out to be quite unclear.
The GBP/USD pair is still under pressure, although the Pound has rallied a bit after statistics on retail sales.
The main currency pair remains within sellers’ eyesight; overseas investors won’t risk before long Easter holidays.
The USD/JPY pair is growing for the third day in a row; the Yen is weakening little by little, but it’s normally.
The main currency pair is being sold for the fifth consecutive session; demand for the Dollar is like “Safe Harbor”.
The GBP/USD pair is trading downwards on Tuesday; sales continue for the third consecutive day without looking back at statistics.
Last week, the FRS decided to not keep out of popular monetary tendencies and, quite unexpectedly, gave all participants of financial markets some “food for thought”.