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 has been rising since the beginning of the week; the Bank of Japan intends to continue to decrease the rates.
The correction smoothly replaced three days of sales in the main currency pair, but the rising impulse isn’t strong enough.
The AUD/USD pair responded to the results of the RBA meeting and right now is being corrected slowly.
On Monday afternoon, the GBP/USD pair is trading significantly lower as the market is analyzing updated information regarding the Brexit.
At the end of the week, the GBP/USD pair is growing slowly, the Pound is being supported by the statistics.
The USD/JPY pair is growing for the third consecutive day despite an insular interest to the US Dollar.
On Thursday afternoon, the main currency pair is trading quite calm; changes in sentiments on the oil market had almost no influence on the instrument.
On Wednesday, the GBP/USD pair is getting weaker after another rumors about stresses for the country’s economy regarding the Brexit.
On Wednesday afternoon, the main currency pair fell at first, then recovered once again, and the evening promises to be alike.
The USD/JPY pair is being corrected to the upside on Tuesday after a “disastrous” Monday.
The main currency pair is moving to the upside on Monday after the Germans published some impressive statistics.
At the end of the trading week, the GBP/USD pair is ready to update September’s lows; investors are once again worried by the Brexit.
The main currency pair is moving upwards after the September meeting of the Fed.
On Wednesday, the AUD/USD pair is moving upwards; investors are calm before the Fed meeting.
On Wednesday morning, the USD/JPY pair is falling after the meeting of the BoJ.