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.
On Thursday morning, the main currency pair updated July’s lows; investors are buying their sales back, but the situation remains uneasy.
On Thursday afternoon, the USD/JPY pair is rising a bit. However, the instrument has already been trading inside a certain range for three weeks and isn’t going to leave it in the nearest future.
The complex statistics from China provided no support for the Aussie; the AUD/USD growth potential is limited.
On Tuesday, the GBP/USD pair is growing after the publication of the strongest statistics on the inflation over the last couple of years.
The AUD/USD pair is trading to the upside on Tuesday morning as investors are buying the Aussie because of a possible interest rate decrease.
The main currency pair is trading to the upside on Monday; the inflation in the Eurozone matched expectations.
The AUD/USD pair is growing on Friday and trying to eliminate its fiasco in the middle of the week.
The USD/JPY pair is being corrected on Thursday after publication of the Fed’s minutes.
On Wednesday afternoon, the main currency pair continues falling and may soon test the July’s lows.
On Wednesday, the AUD/USD pair got stabilized and stopped getting weaker after a positive report from Westpac.
The Japanese Yen is still rather weak, but the pressure is reducing and no one pays attention to the positive statistics from Japan.
The AUD/USD pair got significantly weaker on Tuesday, being influenced by the demand for the American currency.
Despite relatively good statistics from the Eurozone, the main currency pair is falling on Monday.
On Thursday, the main currency pair is back to falling after a short pause.
The GBP/USD pair is focused on expectations and fears that come from the Brexit; the currency pair is being sold regardless of the statistics.