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 GBP/USD pair is falling on Tuesday afternoon; the British budget statistics couldn’t support the Pound.
The USD/JPY pair was falling during the Asian trading session, but moved into the neutral zone by the middle of the day.
The USD/JPY pair is slowly retreating on Monday afternoon, but the market isn’t ready yet to break the three-week trend.
The main currency pair is still under pressure after Janet Yellen’s comments and testing 12 months’ lows.
The main currency pair is trading unsteadily, but is still “in the black” despite some strong American statistics.
The AUD/USD pair continues falling on Thursday; the Aussie reached two months’ low.
The AUD/USD pair is trading downwards on Wednesday after they published some complicated statistics.
The main currency pair’s attempt to reverse the trend to the upside during the Asian trading session on Wednesday failed.
The AUD/USD pair is rather volatile on Tuesday: Australia-related report of the International Monetary Fund gave a lot of causes for reflection.
The USD/JPY pair continues strengthening under the influence of investors’ demand for the USD; the Japanese statistics can’t stand such attack.
The EUR/USD pair is trading downwards at the end of a rather volatile week; investors are having a liking for “safe haven” assets.
The main currency pair continues weakening on Thursday as investors are moving back to the USD.
The AUD/USD pair is growing on Thursday afternoon, but the demand is still less than the amount of yesterday’s sales.
While the world is torn between possible “safe haven” assets and puzzled what happens next, the British Pound is getting more expensive.
The USD/JPY pair is taking the results of the American presidential elections too heavily; investors need a “safe haven”.