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 Wednesday morning, the main currency pair is stabilizing after yesterday’s decline; the market is still in anticipation of the British referendum.
On Tuesday evening, the main currency pair retreated by almost 100 pips; bears are attacking.
The AUD/USD pair is growing; the informational background is stable and investors are calm.
The British Pound has reached a new high of 2016 not because of some economic issues, but because of opinion poll results.
The GBP/USD pair is getting more expensive after the updated results of the brexit polls.
The USD/JPY pair is still at its local ”bottom”, but the sales slowed down because of verbal interventions.
The GBP/USD pair continues weakening on Thursday; April’s lows are very close.
On Thursday afternoon, the main currency pair is moving downwards despite neutral decisions from the FOMC and its restrained language.
The main currency pair is in the black on Wednesday afternoon, but investors are not ready to risk without knowing the Rate Decision.
On Wednesday afternoon, the AUD/USD pair is growing a little bit, thus neutralizing yesterday’s sales.
The GBP/USD pair is falling; bears are moving to reach April’s lows.
The main currency pair is trading downwards on Tuesday in anticipation of the USA FRS meeting.
As long as the macroeconomic calendar is empty, the Eurocurrency is slowly growing against the US Dollar.
The GBP/USD pair is trading downwards; the week end in the dumps.
On Thursday afternoon, the AUD/USD pair is falling after several trading sessions of growth.