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.
On Friday afternoon, the GBP/USD pair is attempting to move away from another local minimum.
The main currency pair is falling again on Friday - it seems that investors will not risk, until they have all the facts at hand.
The AUD/USD pair is trading upward the second day in a row due to fairly good Chinese publications.
The main currency pair is dropping on Tuesday, after a rather successful rally up – there are not enough factors of support, and statistics are volatile.
On Monday, the EUR/USD pair is gradually falling, although there are no specific reasons for the sales yet.
On Friday, the USD/JPY currency pair is falling as it’s unable to resist the confidence the US Dollar has despite the fact that the statistics is very confusing.
On Friday afternoon, the AUD/USD pair is trading lower against the strengthening of the US dollar and news from China.
On Thursday, the main currency pair is trading upward, but investors are not too active - Janet Yellen will give a speech in the evening.
On Wednesday, the main currency pair remains under pressure, and the investors are pessimistic.
After rebounding from the correctional retracement of 61.8%, Eurodollar has resumed its descending movement.
The AUD/USD is trading with a decrease on Tuesday, despite the neutral news and statistics.
On Monday, the main currency pair is trading with a decline, as investors are ambiguously analyzing the Greek news.
The GBP/USD pair is trading with an increase in the afternoon on Wednesday, amid unexpectedly pleasant statistics on the labour market in the UK.
On Wednesday afternoon the main currency pair trading on the downside - too many expectations are ahead, although the facts are not very encouraging either.
The outside lobby is too strong before the meeting of the US Federal Reserve.