Fundamental Analysis in Forex

Jan 13, 2022 at 09:39
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Nov 24, 2021からメンバー   7 投稿
Jan 13, 2022 at 09:39
Fundamental Analysis takes into account factors such as the Social, Economic and Political which will directly affect the currency of that country.

Since each country has its own sets of Social, Economical and Political factors that come into account, which tend to change the price of that country's currency when any such event happens. This is the main reason why we have an Economic Calendar which lists out such Events and the Exact Date and Timing of such events that will take place.

Economic Calendar lists out such events and classifies them into 3 Categories:

High Impact = This type of event will trigger High to Moderate change in the prices of the currency.
Medium Impact = This type of event will trigger Moderate to Little change in the prices of the currency.
Low Impact = The type of Event will trigger only Little or no change in the prices of the currency.

We will need to Track such events and see what is the possible outcome of such an event and Plan our trades accordingly in advance. Since most of the Fundamental News that comes into the markets has an Instant reaction in the form of the Spikes, we will need to Enter into the markets before the release of the News events. rebate

What is Fundamental Analysis?

Fundamental Analysis takes into account the Major Economic Indicators that will have a Direct Effect on the Demand and Supply of the Currency of that Country. We also track the Major Economic Developments that are actually taking place in the country and also the Political Events which may or may not be classified.

The market usually awaits such Economic Data and most of the times the Effect of the Fundamental News comes into play after the release of the News and the Data that it contains. But many times even before the release of the News Data the market starts moving based on the Analyst Projections about the Forthcoming News Data.

The Major Economic Indicators are:

Gross Domestic Product GDP
Retail Sales
Consumer Price Index CPI
Interest Rates
Unemployment Data and Wages
Stock markets and Exchange Traded Funds ETFs
Producer Price Index PPI
Balance of Trade BOT
Housing Market
Manufacturing Activity
Inflation Data
Central Bank News
Oct 12, 2020からメンバー   9 投稿
Jan 13, 2022 at 20:37
Fundamental analysis is a very powerful tool for the market analysis but this tool is very difficult to use. A trader needs to acquire lots of skills and knowledge in order to be able to analyze the economic events properly and come to the right conclusions. Surely, apart from it, you need to have quite a rich experience in analyzing the market if you want your fundamental analysis bring the money in your trading.
Personally, I believe that technical analysis is really enough in the vast majority of cases. So, you can still make good profits even if you know only how to do technical analysis.
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