Forex Fundamental AnalysisThe basics of Forex Fundamental Analysis 🌐
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Forex Fundamental Analysis. BasicsWhat is fundamental analysis?Forex Fundamental Analysis is a type of market analysis which involves studying of the impact of global economic events on the currency market & trends.It gives information on how the big political and economical events influence currency market. Figures and statements given in speeches by important politicians and economists are known among the traders as economical announcements that have great impact on currency market moves. In particular, announcements related to United States economy and politics are the primary to keep an eye on. What is economic calendar?Economic calendar is created by economists where they predict different economics figures and values according to previous months. It contains next data:Date — Time — Currency — Data Released — Actual — Forecast — Previous For example: If the forecast is better than the previous figure, then US dollar usually is going to strengthen against other currencies. If to look at oil prices, a rising price will result in weakening of currencies for countries which depend on huge oil import, e.g. America, Japan. Good examples of detailed economic calendars:Forex Economic Calendar @ MyfxbookForex Economic Calendar @ ForexFactory Forex Economic Calendar @ FXSteet Forex Economic Calendar @ BabyPips Whose speeches to keep an eye on?Chairman of the Federal Reserve Bank of USA, Secretary of the Treasury, President of the Federal Reserve Bank of San Francisco and so on. Speeches of those prominent people are watched closely by traders.What are the most powerful figures that move Forex market?Interest rateTraditionally, if a country raises its interest rates, its currency will strengthen because investors will shift their assets to that country to gain higher returns. Employment situation Trade balance, budget and treasury budget Gross Domestic Product (GDP) When it comes to news trading, however, Forex brokers may not be supportive of traders intensions to trade during news announcements. There has been practices reported when Forex brokers simply freeze platforms during news, so that no trades can be opened or closed.
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