Fundamental analysis 2018

Fundamental analysis 2018

Absolute majority of Forex market traders rely on technical and fundamental analysis as trading
strategy.
The fundamental analysis of Forex is basically based on changes in the economic and political
life of the society. It is these changes that often lead to a predictable change in currencies.
Accordingly, traders using fundamental analysis are interested in owning current information on
the level of inflation, unemployment, the latest political trends that are made available through
news.
Fundamental analysis adds some insight into changes in the price of currencies due to the
development of a particular economic situation. Traders in their forecasts regarding the
development of the situation on the market and the definition of the entry and exit point are often
guided by the data of both technical and fundamental analysis, constantly comparing them and
drawing corresponding conclusions.
What are the basics of fundamental analysis 2018?
As in most other markets, everything in the Forex market is subject to the principles of supply
and demand theory. The level of demand, supply and market activity are determined by the
influence of many economic factors, the key ones being interest rates and stability of the
economic situation.
Many key indicators are available for review in appropriate media and are published in specialty
magazines, newspapers and network resources by government and academic institutions once a
week or once a month. These indicators and takes into account a trader Forex. Fundamental
analysis involves the use of various indicators, but the key ones have been and are: interest rate,
consumer price index, international trade level, volume of orders for long-term consumption
goods, volume of orders for goods sold through the retail network, producer price index.
So the high interest rate often becomes the reason of growth of volume of foreign investments.
The currency gets stronger or, on the contrary, weakens depending on the size of the interest rate.
On the other hand, interest rate growth often becomes a signal for investors to sell their securities
packages. At the same time, they proceed from a completely logical conclusion that increasing
complexity of obtaining credit will adversely affect the efficiency and profitability of companies.
The sale by investors of their shares in the market, in turn, leads to the fall of the latter and
negatively affects the economy of the country as a whole.

 

Daily fundamental analysis - actual information 2018

Daily forex technical analysis - actual information 2018

 


Role of fundamental analysis
As a rule, trade imbalance is necessarily taken into account in the general analysis of the market
situation. If the indicator of the foreign trade deficit for the country for a sufficiently long time
interval remains stable, it does not so clearly affect the price of the currency. But if the foreign
trade deficit exceeds market expectations, the price of the currency may change significantly.
Among the most important indicators influencing the decision-making in favor of choosing a
particular strategy by a Forex trader, the fundamental analysis is the index reflecting the
measurement of the subsistence minimum (consumer price index) and prices for manufactured
goods. The gross domestic product, measured as the value of all goods and services produced in
the country, and the monetary aggregate M2, which determines the total amount of the currency
in the country are also taken into account.
So, fundamental analysis in case of attentive professional approach plays big role in trrading.