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 growing a little bit inside a narrow trading range in anticipation of the results of the FOMC meeting.
On Wednesday morning, the USD/JPY pair grew significantly after the news relating to financial intentions of the Japanese authorities.
The USD/JPY pair is trading to the downside expecting the results of the USA FOMC’s and the BoJ’s meetings.
On Tuesday afternoon, the GBP/USD pair was under pressure a little bit, but it wasn’t enough for a new wave а sales.
At the beginning of the new week, the USD/JPY pair is trying to continue its growth, but investors have no ground for it so far.
In USD/JPY pair, growing channel is kept in force, tool went away enough from "bottom" levels. Interest of capital market to assets of "save haven" is moderate.
AUD/USD pair is traded with descending for the second day, weak statistic adds reasons to sell. Current quotation in AUD/USD - 0.7477.
In Tuesday, pair GBP/USD is traded quite interesting: statistic for inflation is strong, but Pound was not glad.
In Tuesday, main currency pair is descending meagrely, investors analyze incoming news.
At day of Friday, main currency pair is traded with increase, but enthusiasm of buyers is decreased along with publication of statistic data from USA.
On Friday, the main currency pair is moving slowly; investors prefer to wait for the American statistics on the employment in the evening.
The USD/JPY pair is still being sold as investors weren’t inspired by the BoJ statements.
On Thursday afternoon, the main currency pair is moving without spirit and ideas and not reacting to the statistics.
On Wednesday, the GBP/USD pair is moving close to another “bottom”; the long-term uncertainty is against the Pound.
The GBP/USD pair weakened sharply after the report on the United Kingdom’s financial stability had appeared.