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 getting more expensive on Tuesday despite quite complicated statistics.
On Tuesday, the USD/JPY pair is trading downwards a little bit, but on a global scale the Yen is retreating, although unwillingly.
The main currency pair is trading to the upside on Monday, “recovering” after the news published last Friday.
The USD/JPY pair is falling on Friday; the Japanese statistics was not strong.
The main currency pair is strengthening on Thursday afternoon, while the US Dollar is reacting to the oil prices swing.
On Thursday, the AUD/USD pair is trading subtly, but it is still close to March lows.
The USD/JPY pair is back to the center of its mid-term trading range, but still can make some sharp movements.
The AUD/USD pair is falling after the comments made by the head of the RBA.
On Tuesday afternoon, the main currency pair is trading to the downside because of the unequal statistics from Germany.
On Monday, the main currency pair is trading without any particular direction; the market has no desire to both buy and sell.
On Friday morning, the AUD/USD pair is getting more expensive in response to comments of the RBA representative about the inflation.
The GBP/USD pair is retreating slowly, but even now one can see that “bulls” didn’t manage to stay on their local highs.
The main currency pair is trading to the downside for the second day in a row; “bears” become more active again on Thursday evening.
The GBP/USD pair is trading upwards after they published the updated information about attitude of Englishmen to Brexit.
The main currency pair is very sensitive in its respond to representations of American monetary politicians relating to the decisive meeting of the FRS in June.